Loading...
Loading...
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 Comstock Resources Inc. CRK, 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 CRK.
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 just no upward revision. This trend has caused the consensus estimate to trend lower, going from 39 cents a share a month ago to its current level of 9 cents.
Also, for the current quarter, Comstock Resources has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 12 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.9% 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 Production industry, you may instead consider some better-ranked stocks including Sandridge Mississippian Trust II SDR, Atlas Resource Partners, L.P. ARP and Cheniere Energy, Inc. LNG. While Sandridge Mississippian Trust holds a Zacks Rank #1 (Buy), Atlas Resource Partners and Cheniere Energy 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 >>
One such stock that you may want to consider dropping is Comstock Resources Inc. CRK, 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 CRK.
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 just no upward revision. This trend has caused the consensus estimate to trend lower, going from 39 cents a share a month ago to its current level of 9 cents.
Also, for the current quarter, Comstock Resources has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 12 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.9% 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 Production industry, you may instead consider some better-ranked stocks including Sandridge Mississippian Trust II SDR, Atlas Resource Partners, L.P. ARP and Cheniere Energy, Inc. LNG. While Sandridge Mississippian Trust holds a Zacks Rank #1 (Buy), Atlas Resource Partners and Cheniere Energy 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 >>
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 reportCOMSTOCK RESOUR CRK: Free Stock Analysis Report
SANDRDG MS T II SDR: Get Free Report
ATLAS RES PTNRS ARP: Free Stock Analysis Report
CHENIERE ENERGY LNG: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: Short IdeasTrading Ideas
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
