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Why Pentair (PNR) Could Be Positioned for a Slump

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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 Pentair plc (PNR - 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 #5 (Strong Sell) further confirms weakness in PNR.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen five estimates moving down in the past 30 days, compared with just one upward revision. This trend has caused the consensus estimate to trend lower, going from $4.03 a share a month ago to its current level of $2.28.

Also, for the current quarter, Pentair has seen three downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to 69 cents a share from $1.15 over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 36.8% in the past month.

Pentair plc Price and Consensus

Pentair plc Price and Consensus | Pentair plc 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 Manufacturing - Thermal Products industry, you may instead consider a better-ranked stock - Zebra Technologies Corporation (ZBRA - Free Report) . The stock currently holds a Zacks Rank #2 (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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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

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