One such stock that you may want to consider dropping is PMFG, Inc. (PMFG) 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 PMFG.
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 consensus estimate to trend lower, going from earnings of 9 cents a share a month ago to loss of 13 cents now.
Also, for the current quarter, PMFG has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 5 cents a share from earnings per share of 10 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.5% 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 Pollution Control sector, you may instead consider some better-ranked stocks including Sharps Compliance Corp. (SMED), Tetra Tech Inc. (TTEK) and Heritage-Crystal Clean, Inc (HCCI). While Sharps Compliance holds a Zacks Rank #1 (Strong Buy) , Tetra Tech and Heritage-Crystal carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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