One such stock that you may want to consider dropping is Hydrogenics Corporation (HYGS), 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 HYGS.
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 with no upward revisions. This trend has caused the consensus estimate to trend lower, going from a loss of 3 cents a share a month ago to a current loss of 27 cents.
Also, for the current quarter, Hydrogenics Corporation has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 14 cents a share from a loss of 12 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.9% 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 industrial goods sector, you may instead consider a better-ranked stock like AO Smith Corp. (AOS) currently carrying a Zacks Rank #2 (Buy). With favorable Zacks Rank, this stock may be better a selection at this time.
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