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Should You Get Rid of Incyte Corporation (INCY) Now?

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 Incyte Corporation INCY, 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 INCY.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen seven estimates moving down in the past 30 days, compared with just no upward revisions. This has caused the consensus estimate to trend lower, going from 26 cents a share a month ago to its current level of a loss of 31 cents.

Also, for the current quarter, Incyte Corporationhas seen six downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 95 cents a share from a loss of 83 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 11.4% in the past month.

Incyte Corporation Price and Consensus

Incyte Corporation Price and Consensus | Incyte Corporation 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 Geneticsindustry, you may instead consider a better-ranked stock - Aeglea BioTherapeutics, Inc.AGLE. 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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Incyte Corporation (INCY): Free Stock Analysis Report
 
Aeglea BioTherapeutics, Inc. (AGLE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research