Zacks Sell List Highlights: Pegasystems, Rovi, Masimo and ShangPharma


For Immediate Release

Chicago, IL – December 15, 2011 – 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): Pegasystems Inc. (NasdaqGS:PEGA - News) and Rovi Corporation (NasdaqGS:ROVI - News). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Masimo Corporation (NasdaqGS:MASI - News) and ShangPharma Corp (NYSE:SHP - News).

To see the full Zacks #5 Rank List - Stocks to Sell Now visit:

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 PEGA and ROVI 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:

Pegasystems Inc. (NasdaqGS:PEGA - News) announced third-quarter profit of 13 cents per share on November 9 that missed analysts’ expectations by 53.57%. The Zacks Consensus Estimate for the current year slid to 43 cents per share from $1.02 per share in the last 60 days as next year’s estimate dipped 50 cents per share to 85 cents per share in that time span.

Rovi Corporation (NasdaqGS:ROVI - News) posted a third-quarter profit of 30 cents per share on November 8, which came in 16 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $2.02 per share from $2.08 per share over the past two months. For 2012, analysts expect a profit of $2.16 per share, compared to last two month’s projection for a profit of $2.54 per share.  

Here is a synopsis of why MASI and SHP 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;

Masimo Corporation (NasdaqGS:MASI - News) third-quarter profit of 24 cents per share, posted on October 25, lagged analysts’ projections by 14.29%. Estimate for current year slid 11 cents per share to $1.05 per share over two months as next year’s estimate dipped 21 cents per share to $1.21 per share in that time span.

ShangPharma Corp (NYSE:SHP - News) reported a third-quarter profit of 14 cents per share on November 21 that fell 22.22% short of the Zacks Consensus Estimate. The full-year average forecast is currently 65 cents per share, compared with last month’s projection of 72 cents per share. Next year’s forecast dropped to 79 cents per share from 86 cents per share in the same period.

Truly taking advantage of the Zacks Rank requires the understanding of how it works.  The free special report; “Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions” is available to provide this insightful background. Download a free copy now to prosper in the years to come at

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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