Why Meadowbrook Insurance (MIG) Could Be Positioned for a Slump - Tale of the Tape
26 Février 2014 - 2:57PM
Zacks
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
Meadowbrook Insurance Group Inc. (MIG) 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 MIG.
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 revision.
This trend has caused the consensus estimate to trend lower, going
from earnings of 52 cents a share a month ago to its current level
of 42 cents.
Also, for the current quarter, MIG has seen 2 downward estimate
revisions versus no revision in the opposite direction, dragging
the consensus estimate down to 11 cents a share from earnings per
share of 13 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 13.8% in the past month.
If you are still interested in the Insurance Multiline industry,
you may instead consider some better-ranked stocks including
AEGON N.V. (AEG), Old Republic
International Corporation (ORI) and Radian Group
Inc. (RDN).While AEGON and Old Republic carry a Zacks Rank
#1 (Strong Buy), Radian Group holds a Zacks Rank #2 (Buy). With
favorable Zacks Ranks, these stocks may be better selections at
this time.
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RADIAN GRP INC (RDN): Free Stock Analysis Report
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