One such stock that you may want to consider dropping is Hornbeck Offshore Services, Inc. (HOS), 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 HOS.
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 to no upward revision. This trend has caused the consensus estimate to trend lower, going from $2.91 per share a month ago to its current level of $1.62 per share.
Also, for the current quarter, Hornbeck Offshore Services has seen 4 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 31 cents a share from 62 cents per share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.7 % 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 Oils-Energy sector, you may instead consider a better-ranked stock - PDC Energy, Inc. (PDCE). The stock currently holds a Zacks Rank #2 (Buy) and may be better selection at this time.
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HORNBECK OFFSHR (HOS): Free Stock Analysis Report
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