Back to top

Image: Bigstock

Should You Get Rid of Actuant (ATU) Now?

Read MoreHide Full Article

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 Actuant Corporation , 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 ATU.

A key reason for this move has been the negative trend in earnings estimates revisions. For the full year, we have seen six 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 $1.29 per share a month ago to its current level of $1.18.

Also, for the current quarter, Actuant has seen three downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 24 cents a share from 26 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.6% in the past month.

Actuant Corporation Price and Consensus

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 Industrial Products sector, you may instead consider a better-ranked stock - W.W. Grainger, Inc. (GWW - Free Report) . 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>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


W.W. Grainger, Inc. (GWW) - free report >>

Published in