What Falling Estimates & Price Mean for Ring Energy (REI) – Tale of the Tape

One such stock that you may want to consider dropping is Ring Energy, Inc. (REI), 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 REI.

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 60 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 32 cents a share two months ago to its current level of 28 cents.

Also, for the current quarter, Ring Energy has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 6 cents a share from 10 cents over the past 60 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 19.9% 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 US export and production sector, 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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