For Immediate Release
Chicago, IL – July 15, 2011 – Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List – Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Gentiva Health Services, Inc. (NasdaqGS:GTIV - News) and AngloGold Ashanti Limited (NYSE:AU - News). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: StonMor Partners L.P. (NYSE:STON - News) and Tim Hortons, Inc. (NYSE:THI - News).
Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List of Stocks to Sell Now by 80% annually (+2% vs. +10%). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, Zacks told investors which stocks to sell or avoid.
Here is a synopsis of why GTIV and AU have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:
Gentiva Health Services, Inc. (NasdaqGS:GTIV - News) announced first-quarter earnings of 51 cents per share on May 5 that missed analysts’ expectations by 13.56%. The Zacks Consensus Estimate for the current year slipped to $2.69 from $2.75 per share in the last 30 days. Next year’s estimate dipped 17 cents to $2.77 per share in the same time span.
AngloGold Ashanti Limited (NYSE:AU - News) posted a first-quarter profit of 53 cents per share on May 11, which came in 79 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to a profit of $3.64 per share from $3.87 over the past month. For 2012, analysts expect a decrease of 38 cents per share, compared to projection made in the last month to a profit of $4.22 per share.
Here is a synopsis of why STON and THI have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;
StonMor Partners L.P. (NYSE:STON - News) announced first-quarter loss of 15 cents per share on May 10, which missed analysts’ projections by 36.36 %. The Zacks Consensus Estimate for the full year slipped 41 cents to a loss of 82 cents per share over the past 60 days.
Tim Hortons, Inc. (NYSE:THI - News) reported a first-quarter profit of 50 cents per share on May 12 that fell 3.85% short of the Zacks Consensus Estimate. The full-year average forecast fell 1 cents to $2.40 per share in the last two months. Next year’s forecast dropped to $2.78 per share from $2.76 per share over the past month.
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About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (2.8% versus +9.7%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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