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 Westinghouse Air Brake Technologies Corporation (NYSE:WAB) , 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 WAB.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen five estimates moving down in the past 30 days, compared with just no upward revisions. This trend has caused the consensus estimate to trend lower, going from $4.05 a share a month ago to its current level of $3.56.
Westinghouse Air Brake Price and Consensus
Westinghouse Air Brake Technologies Corporation Price and Consensus | Westinghouse Air Brake Technologies Corporation Quote
Also, for the current quarter, Westinghouse Air Brakehas seen four downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to 91 cents a share from $1.07 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.6% 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 Transportation - Equipment and Leasingindustry, you may instead consider a better-ranked stock - CAI International, Inc. (NYSE:CAI) . 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 (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>
Westinghouse Air Brake Technologies Corporation (WAB): Free Stock Analysis Report
CAI International, Inc. (CAI): Free Stock Analysis Report
Original post
Zacks Investment Research