One such stock that you may want to consider dropping is Vantage Drilling Company (VTG), 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 VTG.
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 to no upward revision. This trend has caused the consensus estimate to trend lower, going from 23 cents a share a month ago to its current level of 18 cents.
Also, for the current quarter, Vantage Drilling Company has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 4 cents a share from 8 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 24.0% 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-Drilling industry, you may instead consider Seadrill Partners LLC (SDLP). Further, moving on to the broader energy sector, Sandridge Mississippian Trust II (SDR) and Murphy USA Inc. (MUSA) are some of the better-ranked stocks. All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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