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Why iDreamSky Technology (DSKY) Could Be Positioned for a Slump - Tale of the Tape

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 iDreamSky Technology Limited ( DSKY ), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter. A Zacks Rank #5 (Strong Sell) further confirms weakness in DSKY.

For the current quarter, iDreamSky Technology has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 18 cents a share from 35 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 40.2% 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 Internet software, you may instead consider a better-ranked stock - DTS Inc. ( DTSI ). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.

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IDREAMSKY ADR (DSKY): 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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