Why Horsehead Holding (ZINC) Could Be Positioned for a Slump - Tale of the Tape

One such stock that you may want to consider dropping is Horsehead Holding Corp. (ZINC), 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 ZINC.

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 revisions. The consensus estimate for the full year is currently pegged at a loss of 38 cents per share.

Also, for the current quarter, Horsehead Holding has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 12 cents a share from a loss of 11 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.9% 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 Metal Processing sector, you may instead consider a better-ranked stock - Century Aluminum Co. (CENX). The stock currently holds a Zacks Rank #2 (Buy) and may be better selection at this time.

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HORSEHEAD HLDG (ZINC): Free Stock Analysis Report
 
CENTURY ALUM CO (CENX): Free Stock Analysis Report
 
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