Markets

Should You Get Rid of SandRidge Mississippian Trust (SDT) Now? - Tale of the Tape

An image of stock prices rising and declining in value
Credit: Shutterstock photo

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 SandRidge Mississippian Trust I ( SDT ), 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 SDT.

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 no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.94 a share a month ago to its current level of $1.73 per share.

Also, for the current quarter, SandRidge Mississippian Trust has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 49 cents a share from 56 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 19.8% 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 broader Oil and Gas Exploration and Production sector, you may instead consider a better-ranked stock, Bellatrix Exploration Ltd. ( BXE ), Canadian Natural Resources Limited ( CNQ ) and Crescent Point Energy Corp. ( CPG ). All these stocks hold 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 >>

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

SANDRIDGE MISS (SDT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More