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 Clean Energy Fuels Corp. ( CLNE ), 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 CLNE.
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, with no upward revision. The trend has caused the consensus estimate to trend downward; that is a loss of 98 cents a share a month ago became wider to its current level of a loss of $1.11.
Also, for the current quarter, Clean Energy has seen 3 downward estimate revisions versus no revision in the upside, dragging the consensus estimate down to a loss of 31 cents a share from a loss of 25 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 10% 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 Utilities sector, you may instead consider some better-ranked stocks including Atmos Energy Corporation ( ATO ), New Jersey Resources Corp. ( NJR ) and Piedmont Natural Gas Co. Inc. ( PNY ). All these of these carry a Zacks Rank #2 (Buy) and may be better selections at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
ATMOS ENERGY CP (ATO): Free Stock Analysis Report
CLEAN EGY FUELS (CLNE): Free Stock Analysis Report
NJ RESOURCES (NJR): Free Stock Analysis Report
PIEDMONT NAT GA (PNY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research