Markets
COG

What Falling Estimates & Price Mean for Pegasystems (PEGA)

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Pegasystems Inc.PEGA , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in PEGA.

A key reason for this move has been the negative trend in earnings estimates revisions. For the full year, we have seen three estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 74 cents per share a month ago to its current level of 59 cents per share.

Also, for the current quarter, Pegasystems has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate to 31 cents a share from 39 cent over the past 30 days.

The stock has also seen some pretty dismal trading lately, as the share price has dropped 10.1% in the past month.

Pegasystems Inc. Price and Consensus

Pegasystems Inc. Price and Consensus | Pegasystems Inc. Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.

If you are still interested in the Oil and Gas - Exploration and Production - United States industry, you may instead consider a better-ranked stock - Cabot Oil & Gas Corporation COG . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Pegasystems Inc. (PEGA): Free Stock Analysis Report

Cabot Oil & Gas Corporation (COG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

COG PEGA

Other Topics

Investing Stocks