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 Holdings Inc. (NM), 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 #4 (Sell) further confirms weakness in NM.
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 11 cents a share a month ago to its current level of a loss of 4 cents.
Also, for the current quarter, Navios Maritime has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 19 cents a share from a loss of 13 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 19.6% 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 Shipping Industry, you may instead consider some better-ranked stocks including Kirby Corporation (KEX), KNOT Offshore Partners LP (KNOP) and Ardmore Shipping Corporation (ASC). While Kirby and KNOT Offshore hold a Zacks Rank #1 (Strong Buy), Ardmore Shipping carries a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
NAVIOS MARITIME HOLDINGS INCMARS (NM): Free Stock Analysis Report
KIRBY CORP (KEX): Free Stock Analysis Report
KNOT OFFSHORE PARTNERS LP (KNOP): Free Stock Analysis Report
ARDMORE SHIPPING CORP (ASC): Free Stock Analysis Report
Zacks Investment Research