One such stock that you may want to consider dropping is Whiting Petroleum Corp Corp. (WLL), 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 WLL.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 10 estimates moving down in the past 30 days, compared with just 1 upward revision. This trend has caused the consensus estimate to trend lower, going from $4.46 a share a month ago to its current level of $4.35.
Also, for the current quarter, Whiting Petroleum has seen 8 downward estimate revisions versus 1 revision in the opposite direction, dragging the consensus estimate down to 69 cents a share from 79 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.3% 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 and gas space, you may instead consider a better-ranked stock – Atlas Resource Partners, L.P. (ARP). The stock currently holds a Zacks Rank #2 (Buy) and may be better selection at this time.
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