Falling Earnings Estimates Signal Weakness Ahead for CARBO Ceramics (CRR) - Tale of the Tape

One such stock that you may want to consider dropping is CARBO Ceramics Inc. (CRR), 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 CRR.

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 revision. This trend has caused the consensus loss estimate to widen, going from a loss of 34 cents a share a month ago to its current level of a loss of 78 cents.

Also, for the current quarter, CARBO Ceramics has seen 2 downward estimate revisions versus no revision in the opposite direction, widening the consensus loss estimate to a loss of 13 cents a share from a loss of 8 cents over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.8% 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 broader oil – energy sector, you may instead consider a better-ranked stock - Ferrellgas Partners LP (FGP). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.

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CARBO CERAMICS (CRR): Free Stock Analysis Report
 
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