One such stock that you may want to consider dropping is Silvercrest Mines Inc. (SVLC), 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 SVLC.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 9 cents a share a month ago to its current level of 7 cents.
Also, for the current quarter, Silvercrest Mines has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 4 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.1% 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.
Investors still interested in the mining industry may consider a better-ranked stock like MAG Silver Corp. (MVG), carrying a Zacks Rank #2 (Buy).
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