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What Falling Estimates & Price Mean for Genesis Energy (GEL)
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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 Genesis Energy, L.P. (GEL - 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 #5 (Strong Sell) further confirms weakness in GEL.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.48 a share a month ago to its current level of $1.15.
Also, for the current quarter, Genesis Energy has seen 4 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 23 cents a share from 34 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 7.2% 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 Oils-Energy sector, you may instead consider a better-ranked stock - Cenovus Energy Inc. (CVE - 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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How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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What Falling Estimates & Price Mean for Genesis Energy (GEL)
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 Genesis Energy, L.P. (GEL - 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 #5 (Strong Sell) further confirms weakness in GEL.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.48 a share a month ago to its current level of $1.15.
Also, for the current quarter, Genesis Energy has seen 4 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 23 cents a share from 34 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 7.2% in the past month.
Genesis Energy, L.P. Price and Consensus
Genesis Energy, L.P. Price and Consensus | Genesis Energy, L.P. 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 Oils-Energy sector, you may instead consider a better-ranked stock - Cenovus Energy Inc. (CVE - 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.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>