Is This the Right Time to Add Horsehead Holding Corp (NASDAQ:ZINC) Stock to Your Portfolio?
Aaron Ryan | September 23, 2015
Is This the Right Time to Add Horsehead Holding Corp (NASDAQ:ZINC) Stock to Your Portfolio?
[Zacks] Horsehead Holding Corp (NASDAQ:ZINC)(TREND ANALYSIS) 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 ZINC.
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 a loss of 69 cents a share a month ago to its current level of a loss of 76 cents.
Also, for the current quarter, Horsehead Holding has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 19 cents a share from a loss of 15 cents over the past 30 days.
Stock Performance: Click here for a free comprehensive Trend Analysis Report
Horsehead Holding Corp (NASDAQ:ZINC) stock is currently trading 76.5% below its 52-week-high, 1.23% above its 52-week-low. The 1-year stock price history is in the range of $4.07 – $17.53. Horsehead Holding Corp (ZINC) has a price to book ratio of 0.59 versus Basic Materials sector average of 3.05. ZINC stock price has underperformed the Nasdaq by 70.8%. The Non-Ferrous Metals company is currently valued at $0.23 billion and its share price closed the last trading session at $4.12. The stock has a 50-day moving average of $7.51 and a 200-day moving average of $10.93.
Horsehead Holding Corp (ZINC) current short interest stands at 14.21 million shares. It has decreased by 5% from the same period of last month. Around 33% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.07 million shares, the number of days required to cover the short positions stand at 6.9 days.
The company is expected to announce next quarter earnings on November 09, at consensus estimate of $-0.17. Horsehead Holding Corp (ZINC) reported last quarter earnings on August 07. The Non-Ferrous Metals company announced earnings per share of $-0.22 against a consensus Street estimate of $-0.27, beating the average estimate by $0.05. This corresponds to a decrease of $0.21 compared to the same quarter of the previous fiscal year.
Is this a Buying Opportunity?
There are currently five analysts that cover Horsehead Holding Corp stock. Of those five, three have a Buy rating, two have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $12.5.
A recent analyst activity consisted of FBR Capital who initiated their coverage on the stock with Outperform rating on September 18. FBR Capital fixed their price target at $12. This corresponds to a 191.26% upside from the last closing price. On the date of report, the stock closed at $6.04.
BB&T Capital downgraded their Buy rating to Hold on July 6. On the date of report, the stock closed at $9.54.
Another research firm was Oppenheimer who reiterated their Outperform stance on April 2. Oppenheimer decreased price target from $19 to $17. This translates to a 312.62% upside from the last closing price. On the date of report, the stock closed at $12.61.
Company profile
Horsehead Holding Corporation produces specialty zinc and zinc-based products. The Company’s products are used in a wide variety of applications, including the galvanizing of fabricated steel products and as components in rubber tires, alkaline batteries, paint, chemicals and pharmaceuticals