For Immediate Release
Chicago, IL – January 19, 2012 – 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): BEAM Inc (NYSE:BEAM - News) and Ferrellgas Partners, L.P. (NYSE:FGP - News). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: HudBay Minerals Inc Ord Shs (NYSE:HBM - News) and Kronos Worldwide, Inc. (NYSE:KRO - 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 BEAM and FGP 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:
BEAM Inc (NYSE:BEAM - News) announced third-quarter profit of 53 cents per share on November 3 that missed analysts’ expectations by 10.17%. The Zacks Consensus Estimate for the current year slid to $2.12 per share from $2.13 per share in the last 30 days as next year’s estimate dipped 14 cents per share to $2.29 per share in that time span.
Ferrellgas Partners, L.P. (NYSE:FGP - News) posted a first-quarter loss of 42 cents per share on December 9, which came in 13 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to 47 cents per share from 66 cents per share over the past two months. For 2013, analysts expect a profit of 58 cents per share, compared to last month’s projection for a profit of 88 cents per share.
Here is a synopsis of why HBM and KRO 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;
HudBay Minerals Inc Ord Shs (NYSE:HBM - News) third-quarter loss of 5 cents per share, posted on November 2, lagged analysts’ projections by 122.73%. Estimate for current year slid 2 cents per share to 61 cents per share over a month as next year’s estimate dipped 20 cents per share to 44 cents per share in that time span.
Kronos Worldwide, Inc. (NYSE:KRO - News) reported a third-quarter profit of 74 cents per share on November 3 that fell 7.50% short of the Zacks Consensus Estimate. The full-year average forecast is currently $2.65 per share, compared with last month’s projection of $2.72 per share. Next year’s forecast dropped to $3.04 per share from $3.16 per share in the same period.
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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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