One such stock that you may want to consider dropping is Halcon Resources Corporation (HK), 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 #4 (Sell) further confirms weakness in HK.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 7 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 20 cents a share a month ago to its current level of 15 cents.
Also, for the current quarter, Halcon Resources has seen 6 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 2 cents a share from 4 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 30.7% 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.
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