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 Insperity, Inc. NSP, 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 NSP.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen four estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $4.64 a share a month ago to its current level of $4.13.
Also, for the current quarter, Insperity has seen four downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 55 cents a share from 81 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 27.3% in the past month.
Insperity, Inc. Price and Consensus
Insperity, Inc. price-consensus-chart | Insperity, 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 Staffing Firms industry, you may instead consider a better-ranked stock - Cross Country Healthcare, Inc. CCRN. 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.
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>>
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
Insperity, Inc. (NSP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research