One such stock that you may want to consider dropping is Meadowbrook Insurance Group Inc. (MIG) 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 MIG.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from earnings of 52 cents a share a month ago to its current level of 42 cents.
Also, for the current quarter, MIG has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 11 cents a share from earnings per share of 13 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.8% in the past month.
If you are still interested in the Insurance Multiline industry, you may instead consider some better-ranked stocks including AEGON N.V. (AEG), Old Republic International Corporation (ORI) and Radian Group Inc. (RDN).While AEGON and Old Republic carry a Zacks Rank #1 (Strong Buy), Radian Group holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections 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 >>
Be the first to comment