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Tale of the Tape

Zacks Equity Research

Weakness Seen in TPI Composites (TPIC) Estimates: Should You Stay Away?
November 16, 2016

HDSN TPIC

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 TPI Composites, Inc. (TPIC - Free 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 TPIC.

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 76 cents a share a month ago to its current level of 55 cents.

Also, for the current quarter, TPI Composites has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 11 cents a share from a loss of 10 cents over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.8% in the past month.

TPI COMPOSITES Price and Consensus

 

TPI COMPOSITES Price and Consensus | TPI COMPOSITES Quote

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 Industrial Services industry, you may instead consider a better-ranked stock - Hudson Technologies Inc. (HDSN - Free 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.

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