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 Gastar Exploration Inc. GST 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 GST.
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 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from earnings of 38 cents a share a month ago to its current level of 27 cents.
Also, for the current quarter, Gastar Exploration has seen 1 downward estimate revision versus 1 revision in the opposite direction, dragging the consensus estimate down to 6 cents per share from 3 cents a share over the past 30 days.
The stock has also seen some pretty dismal trading lately, as the share price has dropped 18.0 % 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 Oil Exploration and Production industry, you may instead consider some better-ranked stocks including ARC Resources Ltd. (AETUF), Baytex Energy Corp. BTE and TransGlobe Energy Corporation TGA. All these stocks carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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 >>
ARC RESOURCES (AETUF): Get Free Report
BAYTEX ENERGY BTE: Free Stock Analysis Report
GASTAR EXPL LTD GST: Free Stock Analysis Report
TRANSGLOBE ENGY TGA: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from earnings of 38 cents a share a month ago to its current level of 27 cents.
Also, for the current quarter, Gastar Exploration has seen 1 downward estimate revision versus 1 revision in the opposite direction, dragging the consensus estimate down to 6 cents per share from 3 cents a share over the past 30 days.
The stock has also seen some pretty dismal trading lately, as the share price has dropped 18.0 % 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 Oil Exploration and Production industry, you may instead consider some better-ranked stocks including ARC Resources Ltd. (AETUF), Baytex Energy Corp. BTE and TransGlobe Energy Corporation TGA. All these stocks carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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 >>
ARC RESOURCES (AETUF): Get Free Report
BAYTEX ENERGY BTE: Free Stock Analysis Report
GASTAR EXPL LTD GST: Free Stock Analysis Report
TRANSGLOBE ENGY TGA: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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