Should You Get Rid of Navios Maritime Acquisition (NNA) 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 Navios Maritime Acquisition Corporation (NNA), 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 NNA.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 12 cents a share a month ago to its current level of 8 cents.
Although for the current quarter, the consensus estimate has remained unchanged over the past 30 days, Navios Maritime Acquisition has seen 1 downward estimate revision versus no revision in the opposite direction.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 18.2% 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 Transport-Shipping sector, you may instead consider some better-ranked stocks including Costamare Inc. (CMRE), Ship Finance International Limited (SFL) and Star Bulk Carriers Corp. (SBLK). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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NAVIOS MARITIME ACQUISITION CORP (NNA): Free Stock Analysis Report
COSTAMARE INC (CMRE): Free Stock Analysis Report
SHIP FINANCE INTERNATIONAL LTD (SFL): Free Stock Analysis Report
STAR BULK CARRIERS CORP (SBLK): Free Stock Analysis Report
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