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Should You Get Rid of Ferroglobe (GSM) Now?

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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Ferroglobe PLC (GSM - Free Report) , 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 GSM.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen five estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 57 cents a share a month ago to its current level of 31 cents.

Also, for the current quarter, Ferroglobe has seen five downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 5 cents a share from earnings of 12 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 27.4% in the past month.

Ferroglobe PLC Price and Consensus

Ferroglobe PLC Price and Consensus | Ferroglobe PLC Quote

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 Chemical - Specialty industry, you may instead consider a better-ranked stock - Daqo New Energy Corp. (DQ - Free Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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