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What Makes Durata Therapeutics (DRTX) a Strong Sell? - Tale of the Tape

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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 Durata Therapeutics, Inc. ( DRTX ), 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 #4 (Sell) further confirms weakness in DRTX.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 estimates moving down in the past 30 days, compared with just 1 upward revision. This trend has caused the consensus estimate to move wider from a loss of $2.74 a share a month ago to its current level of a loss of $3.02.

Also, for the current quarter, Durata Therapeutics's has seen 3 downward estimates revision versus no revisions in the opposite direction, widening the consensus estimate to a loss of 91 cents a share from a loss of 66 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.4% in the past month.

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 Medical sector, you may instead consider some better-ranked stocks including Enanta Pharmaceuticals, Inc. ( ENTA ), Endo International plc ( ENDP ) and Hyperion Therapeutics, Inc. ( HPTX ). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.

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DURATA THERAPT (DRTX): Free Stock Analysis Report

ENANTA PHARMA (ENTA): Free Stock Analysis Report

ENDO INTL PLC (ENDP): Free Stock Analysis Report

HYPERION THERAP (HPTX): Free Stock Analysis Report

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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.

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