Advertisement
Canada markets closed

  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     

  • Bitcoin CAD

    88,195.55
    +658.74 (+0.75%)
     

  • CMC Crypto 200

    1,385.44
    +72.81 (+5.77%)
     

  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     

  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     

  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

What Makes FX Energy (FXEN) a Strong Sell?

Zacks Equity Research


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 FX Energy Inc. (FXEN), 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 #5 (Strong Sell) further confirms weakness in FXEN.

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. The consensus estimate has also trended lower, going from earnings of 6 cents a share a month ago to its current level of a loss of 10 cents.

For the current quarter, FX Energy has not seen any estimate revision, and the consensus estimate has been flat at a loss of 2 cents a share over the past 30 days.

The stock has also seen some pretty dismal trading lately, as the share price has dropped 11.3% 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 and Valero carry a Zacks Rank #1 (Strong Buy), Clayton Williams holds 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 >>





FX ENERGY INC (FXEN): Free Stock Analysis Report

CLAYTON WILLIAMS ENERGY INC (CWEI): Free Stock Analysis Report

VERMILION ENERGY INC (VET): Free Stock Analysis Report

VALERO ENERGY CORP (VLO): Free Stock Analysis Report


Zacks Investment Research