Why JGWPT Holdings (JGW) Could Be Positioned for a Slump - Tale of the Tape
April 24 2014 - 8:59AM
Zacks
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
JGWPT Holdings Inc. (JGW), 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 JGW.
A key reason for this move has been the negative trend in earnings
estimate revisions. For the full year, although the number of
estimate revisions remained flat, the consensus estimate moved
down, going from $1.77 a share a month ago to its current level of
$1.68.
Also, for the current quarter, JGWPT Holdings has seen 4 downward
estimate revisions versus no revisions in the opposite direction,
dragging the consensus estimate down to 43 cents a share from 56
cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 18.8% 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 finance sector, you may instead
consider some better-ranked stocks including Home Loan
Servicing Solutions, Ltd. (HLSS) and Central
Pacific Financial Corp. (CPF), with a Zacks Rank #1
(Strong Buy), and Walker & Dunlop, Inc. (WD),
holding a Zacks Rank #2 (Buy).
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HOME LOAN SERVC (HLSS): Free Stock Analysis Report
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