What Falling Estimates & Price Mean for Oil States International (OIS)?

Zacks

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 Oil States International Inc. (OIS), 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 OIS.

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 $5.47 a share a month ago to its current level of $3.67.

Also, for the current quarter, Oil States International has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 94 cents a share from $1.22 over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 34.4% 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 Oil Field Machinery & Equipment sector, you may instead consider some better-ranked stocks including Cameron International Corporation (CAM), Matrix Service Company (MTRX) and Weatherford International Ltd. (WFT). While Cameron International carries a Zacks Rank #1 (Strong Buy), Matrix Service and Weatherford International carry a Zacks Rank #2 (Buy) and may be better selections at this time.

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OIL STATES INTERNATIONAL 4 (OIS): Free Stock Analysis Report

CAMERON INTERNATIONAL CORP (CAM): Free Stock Analysis Report

MATRIX SERVICE CO (MTRX): Free Stock Analysis Report

WEATHERFORD INTL LTD (WFT): Free Stock Analysis Report


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