What Falling Estimates & Price Mean for Safe Bulkers (SB) – Tale of the Tape

One such stock that you may want to consider dropping is Safe Bulkers, Inc. (SB), 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 SB.

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 40 cents a share a month ago to its current level of 26 cents.

Also, for the current quarter, Safe Bulkers has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 3 cents a share from 6 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 15% 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 Transport-Shipping sector, you may instead consider some better-ranked stocks including Ship Finance International Limited (SFL), GasLog Partners LP (GLOP) and KNOT Offshore Partners LP (KNOP). While Ship Finance International holds a Zacks Rank #1 (Strong Buy), GasLog Partners and KNOT Offshore Partners hold a Zacks Rank #2 (Buy) and may be better selections at this time.

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