One such stock that you may want to consider dropping is MRC Global Inc. (MRC), 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 MRC.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.71 a share a month ago to its current level of $1.69.
Also, for the current quarter, MRC Global has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 46 cents a share from 48 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped nearly 12% 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 Steel-Pipe&Tube sector, you may instead consider a better-ranked stock – Synalloy Corporation (SYNL). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.
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