What Makes Compa (BVN) a Strong Sell? - Tale of the Tape - Agnico Eagle Mines (NYSE:AEM), Compañía de Minas (NYSE:BVN)

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 Compa BVN, 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 BVN.

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 with no upward revision. This trend has caused the loss estimate to widen, going from 95 cents a share a month ago to its current level of 77 cents.

Also, for the current quarter, Compa has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 23 cents from 28 cents a share over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.38% 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 Basic Materials sector, you may instead consider some better-ranked stocks including Agnico Eagle Mines Limited AEM, Compass Minerals International Inc. CMP and Kumba Iron Ore Ltd. (KIROY). 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 >>

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

AGNICO EAGLE AEM: Free Stock Analysis Report

BUENAVENTUR-ADR BVN: Free Stock Analysis Report

COMPASS MINERLS CMP: Free Stock Analysis Report

KUMBA IRON ORE (KIROY): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research

Market News and Data brought to you by Benzinga APIs