Weakness Seen in Contango (MCF) Estimates: Should You Stay Away? - Tale of the Tape

One such stock that you may want to consider dropping is Contango Oil & Gas Company (MCF), 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 MCF.

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. This trend has caused the consensus estimate to trend lower, going from $1.85 a share a month ago to its current level of $1.68.

Also, for the current quarter, Contango has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 4 cents a share from an earnings expectation of 13 cents over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.7% 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 energy sector, you may instead consider a better-ranked stock like Sunoco LP Common Units represen (SUN). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.

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CONTANGO OIL&GS (MCF): Free Stock Analysis Report
 
SUNOCO LP (SUN): Free Stock Analysis Report
 
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