Back to top

Tale of the Tape

Zacks Equity Research

Falling Earnings Estimates Signal Weakness Ahead for Nordic American Tankers (NAT)
October 19, 2016


Trades from $3

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 Nordic American Tankers Limited (NAT - Snapshot Report) , 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 NAT.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 66 cents a share a month ago to its current level of 49 cents.

NORDIC AMERICAN Price and Consensus

Also, for the current quarter, Nordic American Tankers has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to loss of 15 cents a share from loss of 14 cents over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.1% 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 Transportation-Ship Industry, you may instead consider a better-ranked stock - Genco Shipping & Trading Ltd. (GNK - Snapshot Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>