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 Amyris, Inc. (AMRS), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current year. A Zacks Rank #4 (Sell) further confirms weakness in AMRS.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have not seen any estimate moving down in the past 30 days. But the consensus estimate has trended lower, going from a loss of $1.34 a share a month ago to its current level of a loss of $1.52.
For the current quarter, Amyris has not seen any estimate revision either, but the consensus estimate has moved down to a loss of 32 cents per share from a loss of 29 cents a share over the past 30 days.
The stock has also seen some pretty dismal trading lately, as the share price has dropped 13.6% 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 some better-ranked stocks including, Vermilion Energy Inc. (VET), Valero Energy Corporation (VLO) and Clayton Williams Energy, Inc. (CWEI). While Vermilion carries a Zacks Rank #1 (Strong Buy), Clayton Williams and Valero hold a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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AMYRIS INC (AMRS): Free Stock Analysis Report
VERMILION ENERGY INC (VET): Free Stock Analysis Report
VALERO ENERGY CORP (VLO): Free Stock Analysis Report
CLAYTON WILLIAMS ENERGY INC (CWEI): Free Stock Analysis Report
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