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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 3 estimates moving down in the past 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from earnings of 8 cents a share a month ago to its current level of a loss of 8 cents.
Also, for the current quarter, McDermott International has seen 2 downward estimate revisions versus 1 revision in the opposite direction, dragging the consensus estimate down to a loss of 12 cents per share from a loss of 6 cents a share over the past 30 days.
The stock has also seen some pretty dismal trading lately, as the share price has dropped 11.6% 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 Oils/Energy sector, you may instead consider some better-ranked stocks including, Vermilion Energy Inc. (VET), Valero Energy Corporation (NYSE: VLO) and Clayton Williams Energy, Inc. (NASDAQ: CWEI). While Vermilion carries a Zacks Rank #1 (Strong Buy), Clayton Williams and Valero hold a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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WILLIAMS(NYSE: C)ENGY (NASDAQ: CWEI): Free Stock Analysis Report
MCDERMOTT INTL (NYSE: MDR): Free Stock Analysis Report
VERMILION EGY (VET): Free Stock Analysis Report
VALERO ENERGY (NYSE: VLO): Free Stock Analysis Report
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