For Immediate Release
Chicago, IL – July 13, 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): Banco Bradesco SA (BBD) and Markwest Energy Partners LP (MWE).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Eldorado Gold Corp (EGO) and Compass Minerals International, Inc. (CMP).
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 BBD and MWE 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:
Banco Bradesco SA (BBD) announced first -quarter profit of 39 cents per share on April 25 which came behind the Zacks Consensus Estimate by 2 cents. The diluted earnings per share also fell by 15.22% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 9 cents per share to $1.63 in the last 60 days. Next year’s estimate also dipped 21 cent per share to $1.81 per share in the same time span.
Markwest Energy Partners LP (MWE) posted a first -quarter profit of 55 cents per share on May 10, which came in 2 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $1.91 per share from $2.27 over the past two months with none out of 5 covering analysts slashed forecasts. Next year’s forecasts slipped 33 cents to $2.72 per share in the same time span.
Here is a synopsis of why EGO and CMP 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;
Eldorado Gold Corp (USA) (EGO) first-quarter profit of 14 cents per share, posted on May 10, lagged analysts projections by nearly 17.65%. For 2012, the Zacks Consensus Estimate moved down 1 cent in the last 30 days as1 out of the 13 covering analysts cut back on forecasts. The forecast for next year slid 2 cents to 78 cents per share in the same time span.
Compass Minerals International, Inc. (CMP) reported a first-quarter profit of $1.48 per share on April 26, that fell 2.63% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $4.05 per share, compared with the last 30 days projection of $4.08. Next year’s forecast dropped 3 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 http://at.zacks.com/?id=93
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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