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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 The Gorman-Rupp Company (GRC - Free Report) , 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 GRC.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.05 a share a month ago to its current level of 92 cents.
Also, for the current quarter, Gorman-Rupp has seen one downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 22 cents from 27 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.7% 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 Manufacturing - General Industrial industry, you may instead consider a better-ranked stock - Altra Industrial Motion Corp. (AIMC). 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.
Sell These Stocks Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Should You Get Rid of Gorman-Rupp (GRC) Now?
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 The Gorman-Rupp Company (GRC - Free Report) , 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 GRC.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.05 a share a month ago to its current level of 92 cents.
Also, for the current quarter, Gorman-Rupp has seen one downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 22 cents from 27 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.7% in the past month.
Gorman-Rupp Company (The) Price and Consensus
Gorman-Rupp Company (The) Price and Consensus | Gorman-Rupp Company (The) 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 Manufacturing - General Industrial industry, you may instead consider a better-ranked stock - Altra Industrial Motion Corp. (AIMC). 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.
Sell These Stocks Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>