One such stock that you may want to consider dropping is Parsley Energy, Inc. (PE), 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 PE.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 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 46 cents a share a month ago to its current level of 35 cents.
Also, for the current quarter, Parsley Energy has seen 2 downward estimate revisions versus 1 revision in the opposite direction, dragging the consensus estimate down to 6 cents a share from 10 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.4% 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 Exploration and Production sector, you may instead a better-ranked stock Antero Resources Corporation (AR) with a Zacks Rank #2 (Buy).
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