One such stock that you may want to consider dropping is Jones Energy, Inc. (JONE), 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 JONE.
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 83 cents a share a month ago to its current level of 80 cents per share.
Also, for the current quarter, Jones Energy has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 14 cents a share from 16 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.7% 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-US 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment