What Makes Delta Apparel (DLA) a Strong Sell? - Tale of the Tape
May 08 2014 - 8:53AM
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
Delta Apparel Inc. (DLA), 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 DLA.
A key reason for this move has been the negative trend in earnings
estimate revisions. For the full year, we have seen 1 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 $1.95 a share a month ago to its current level of 77
cents.
Also, for the current quarter, Delta Apparel has seen 1 downward
estimate revision versus no revisions in the opposite direction,
dragging the consensus estimate down to 69 cents a share from 84
cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 13% 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 apparel industry, you may
instead consider some better-ranked stocks including
Hanesbrands Inc. (HBI), V.F.
Corporation (VFC) and Columbia Sportswear
Company (COLM). All these stocks hold a Zacks Rank #2
(Buy) and may be better selections at this time.
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COLUMBIA SPORTS (COLM): Free Stock Analysis Report
DELTA APPAREL (DLA): Get Free Report
HANESBRANDS INC (HBI): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
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