Weakness Seen in PowerSecure International (POWR) Estimates: Should You Stay Away? - Tale of the Tape - Matrix Service (NASDAQ:MTRX)

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 PowerSecure International, Inc. POWR, 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 POWR.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 75 cents a share a month ago to its current level of loss of 15 cents.

Also, for the current quarter, PowerSecure has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to loss of 15 cents a share from earnings of 18 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 67.93% 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 & Energy sector, you may instead consider some better-ranked stocks including include Matrix Service Company MTRX, Cameron International Corporation CAM and USA Compression Partners, LP USAC. Among these stocks Matrix Service Company holds a Zacks Rank #1(Strong Buy) and Cameron International and USA Compression hold a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

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CAMERON INTL CAM: Free Stock Analysis Report

MATRIX SERVICE MTRX: Free Stock Analysis Report

POWERSECURE INT POWR: Free Stock Analysis Report

USA COMPRESSION USAC: Free Stock Analysis Report

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