This is not a story about an Energy sector company that was the victim of last year’s plunge in oil prices.
I first chose Chart Industries (NASDAQ:GTLS) for a Bear of the Day article in November of 2013 after the company’s 3rd-quarter earnings report included a miss and guide lower, leaving investors and the stock completely out of fuel as shares dropped over 27% in the next three weeks from all-time highs near $130.
And I revisited the company as a Zacks #5 Rank Strong Sell in March of 2014 when the stock was still above $80. Here’s the chart for Chart that tells the story of steadily declining earnings estimates since 4Q13, which in turn explain why the stock fell over 75%…
The gas processing and storage technologies required for LNG and medical markets may be in the hands of Chart Industries. And the turn-around in the business outlook could come any day. But until the earnings estimates start heading in the other direction, it’s best to chart a different course.
Kevin Cook is a Senior Stock Strategist for Zacks where he runs the Follow The Money (FTM) portfolio.