Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is CVR Refining, LP CVRR, 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 CVRR.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, there has been Array downward estimate revision as compared to no revision in the upward revision. The consensus estimate has gone lower from $2.63 a share a month ago to its current level of $2.29 per share.
Also, for the current quarter, CVR Refining has seen Array downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 76 cents from a loss of 52 cents per share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 34.3% 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 Refining & Marketing MLP industry, you may instead consider a better-ranked stock – Golar LNG Partners Limited Partnership GMLP. The stock currently holds a Zacks Rank #2 (Buy) and may be better selection at this time.
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