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 Mitcham Industries Inc. (MIND), 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 MIND.
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 revision. This trend has caused the consensus estimate to trend lower, going from 80 cents a share a month ago to its current level of 44 cents.
Also, for the current quarter, Mitcham Industries has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 5 cents a share from 14 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 20.9% 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 Field Machinery and Equipment sector, you may instead consider some better-ranked stocks including Cameron International Corporation (CAM), PowerSecure International, Inc. (POWR) and FMC Technologies, Inc. (FTI). While Cameron International and PowerSecure International hold a Zacks Rank #1 (Strong Buy), FMC Technologies holds Zacks Rank #2 (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
MITCHAM INDS (MIND): Free Stock Analysis Report
CAMERON INTL (CAM): Free Stock Analysis Report
POWERSECURE INT (POWR): Free Stock Analysis Report
FMC TECH INC (FTI): 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 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 80 cents a share a month ago to its current level of 44 cents.
Also, for the current quarter, Mitcham Industries has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 5 cents a share from 14 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 20.9% 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 Field Machinery and Equipment sector, you may instead consider some better-ranked stocks including Cameron International Corporation (CAM), PowerSecure International, Inc. (POWR) and FMC Technologies, Inc. (FTI). While Cameron International and PowerSecure International hold a Zacks Rank #1 (Strong Buy), FMC Technologies holds Zacks Rank #2 (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
MITCHAM INDS (MIND): Free Stock Analysis Report
CAMERON INTL (CAM): Free Stock Analysis Report
POWERSECURE INT (POWR): Free Stock Analysis Report
FMC TECH INC (FTI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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