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MARKETS LIVE BLOG:

STOCKS SHED GAINS, TESLA SURGES DAY AFTER EARNINGS

Tesla shares jump after EV maker vows to speed up launch of more affordable models

What Makes Compugen Ltd. (CGEN) a Strong Sell?

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 Compugen, Inc. CGEN, 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 CGEN.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 60 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from loss of 55 cents a share a month ago to its current level of loss of 63 cents per share.

Also, for the current quarter, Compugen has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to loss of 18 cents a share from loss of 13 cents over the past 30 days.  

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The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.9% in the past month.

COMPUGEN LTD Price and Consensus

COMPUGEN LTD Price and Consensus | COMPUGEN LTD 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 Medical Biomedical and Genetics industry, you may instead consider a better-ranked stock Cambrex Corporation CBM. 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 (Strong Buy) stocks here.

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In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>


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COMPUGEN LTD (CGEN): Free Stock Analysis Report
 
CAMBREX CORP (CBM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research