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 Genie Energy Ltd. GNE, 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 #3 (Hold) further confirms weakness in GNE.
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 a loss of 11 cents a share a month ago to its current level of a loss of 28 cents.
Also, for the current quarter, Genie Energy has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 5 cents a share from 11 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.8% 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 electric supply sector, you may instead consider some better-ranked stocks including Black Hills Corporation BKH, Public Service Enterprise Group Inc. PEG and NRG Energy, Inc. NRG. All these stocks hold a Zacks Rank #1 (Strong Buy) and 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 >>
BLACK HILLS COR BKH: Free Stock Analysis Report
GENIE ENERGY-B GNE: Get Free Report
NRG ENERGY INC NRG: Free Stock Analysis Report
PUBLIC SV ENTRP PEG: Free Stock Analysis Report
To read this article on Zacks.com click here.
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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 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 a loss of 11 cents a share a month ago to its current level of a loss of 28 cents.
Also, for the current quarter, Genie Energy has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 5 cents a share from 11 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.8% 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 electric supply sector, you may instead consider some better-ranked stocks including Black Hills Corporation BKH, Public Service Enterprise Group Inc. PEG and NRG Energy, Inc. NRG. All these stocks hold a Zacks Rank #1 (Strong Buy) and 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 >>
BLACK HILLS COR BKH: Free Stock Analysis Report
GENIE ENERGY-B GNE: Get Free Report
NRG ENERGY INC NRG: Free Stock Analysis Report
PUBLIC SV ENTRP PEG: Free Stock Analysis Report
To read this article on Zacks.com click here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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