One such stock that you may want to consider dropping is Rice Energy Inc. (RICE), 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 RICE.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen no estimate moving in either direction in the past 30 days. Though, the consensus estimate is trending lower, going from 17 cents a share a month ago to its current level of 14 cents.
Also, for the current quarter, Rice Energy has seen 1 downward estimate revision versus no revision in the opposite direction. However, the consensus estimate remains flat at 4 cents a share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 26.7% 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-U.S. Exploration & Production industry, you may instead consider a better-ranked stock – Midstates Petroleum Company, Inc. (MPO). The stock currently holds a Zacks Rank #2 (Buy) and may be better selection at this time.
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