One such stock that you may want to consider dropping is Northern Oil and Gas, Inc. (NOG), 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 NOG.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 estimates moving down in the past 30 days, compared with just 1 upward revision. This trend has caused the consensus estimate to trend lower, going from $1.15 a share a month ago to its current level of 98 cents.
Also, for the current quarter, Northern Oil and Gas has seen 3 downward estimate revisions versus just 1 revision in the opposite direction, dragging the consensus estimate down to 22 cents a share from 27 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.3% 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 & Gas Exploration & Production Industry, you may instead consider better-ranked stocks like Range Resources Corporation (RRC), Clayton Williams Energy, Inc. (CWEI) and Approach Resources, Inc. (AREX). While RRC and CWEI sports a Zacks Rank #1 (Strong Buy), AREX has a Zacks Rank #2 (Buy).
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