Should You Get Rid of Stone Energy (SGY) Now? – Tale of the Tape

One such stock that you may want to consider dropping is Stone Energy Corp. (SGY), 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 SGY.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 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 70 cents a share a month ago to its current level of 60 cents.

Also, for the current quarter, Stone Energy has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate to break even from 4 cents per share over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 14.4% 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 and Production industry, you may instead consider a better-ranked stock like Sandridge Mississippian Trust II (SDR), carrying a Zacks Rank #1 (Strong Buy). With favorable Zacks Rank, this stock may be a better selection at this time.

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