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What Makes Costamare (CMRE) a Strong Sell?

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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 Costamare Inc. (CMRE - 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 CMRE.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 estimates moving down in the past 30 days, compared with 1 upward revisions. This trend has caused the consensus estimate to trend lower, going from earnings of $1.25 a share a month ago to its current level of 98 cents per share.

Also, for the current quarter, Costamare has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to earnings of 22 cents a share from earnings of 32 cents over the past 30 days.  

Costamare Inc. Price and Consensus

The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.7% 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 Transportation – Shipping industry, you may instead consider a better-ranked stock Genco Shipping & Trading Limited Warrants (GNK - 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 (Strong Buy) stocks here.

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Costamare Inc. (CMRE) - free report >>

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