Advertisement
Canada markets closed

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7304
    +0.0006 (+0.08%)
     

  • CRUDE OIL

    82.81
    0.00 (0.00%)
     

  • Bitcoin CAD

    88,196.67
    -3,109.92 (-3.41%)
     

  • CMC Crypto 200

    1,389.95
    -34.15 (-2.40%)
     

  • GOLD FUTURES

    2,320.70
    -17.70 (-0.76%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,458.75
    -205.75 (-1.16%)
     

  • VOLATILITY

    15.97
    +0.28 (+1.78%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    37,818.11
    -641.97 (-1.67%)
     

  • CAD/EUR

    0.6818
    -0.0001 (-0.01%)
     

Falling Earnings Estimates Signal Weakness Ahead for Ritchie Bros. (RBA)

Zacks Equity Research
Updated

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 Ritchie Bros. Auctioneers Incorporated RBA, 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 RBA.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen three 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 $1.10 a share a month ago to its current level of 98 cents.

Also, for the current quarter, Ritchie Bros. has seen three downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 33 cents a share from 35 cents over the past 30 days.  

ADVERTISEMENT

The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.7% in the past month.

Ritchie Bros. Auctioneers Incorporated Price and Consensus

Ritchie Bros. Auctioneers Incorporated Price and Consensus | Ritchie Bros. Auctioneers Incorporated 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 Auction and Valuation Services industry, you may instead consider a better-ranked stock - Sotheby's BID. 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.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>


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
 
Ritchie Bros. Auctioneers Incorporated (RBA) : Free Stock Analysis Report
 
Sotheby's (BID) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research