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Should You Get Rid of Third Point Reinsurance (TPRE) Now?

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 Third Point Reinsurance Ltd.TPRE , 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 TPRE.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen two 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 91 cents a share a month ago to its current level of 23 cents.

Also, for the current quarter, Third Point Reinsurance has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 47 cents a share from 20 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 7.1% in the past month.

Third Point Reinsurance Ltd. Price and Consensus

Third Point Reinsurance Ltd. Price and Consensus | Third Point Reinsurance Ltd. 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 Insurance - Property and Casualty industry, you may instead consider a better-ranked stock - CNA Financial Corporation CNA . 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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CNA Financial Corporation (CNA): Free Stock Analysis Report

Third Point Reinsurance Ltd. (TPRE): Free Stock Analysis Report

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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.

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