For Immediate Release
Chicago, IL – December 6, 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): Best Buy Co., Inc. (BBY) and Spectrum Brands Holdings, Inc. (SPB). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: The Fresh Market Inc (TFM) and Genuine Parts Company (GPC).
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 BBY and SPB 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:
Best Buy Co., Inc. (BBY) announced third -quarter profit of 3 cents per share on November 20 which came behind the Zacks Consensus Estimate by 9 cents. The diluted earnings per share also fell by 93.62% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 32 cents per share to $2.53 in the last 30 days. Next year’s estimate also dipped 51 cents per share to $2.24 per share in that time span.
Spectrum Brands Holdings, Inc. (SPB) posted a fourth -quarter profit of 5 cents per share on November 14, which came in 1 cent wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $2.91 per share from $3.03 over the past month with 1 out of 2 covering analysts slashed forecasts. Next year’s forecasts slipped 2 cents to $3.63 per share in the same time span.
Here is a synopsis of why TFM and GPC 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;
The Fresh Market Inc (TFM) third -quarter profit of 23 cent per share, posted on November 28, lagged analysts projections by nearly 11.54%. For 2012, the Zacks Consensus Estimate moved down 3 cents in the last 30 days as 14 out of the 15 covering analysts cut back on forecasts. The forecast for next year slid 5 cents to $1.69 per share in the same time span.
Genuine Parts Company (GPC) reported a third-quarter profit of $1.11 per share on October 18, that fell 0.89% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $4.05 per share, compared with the last 60 days projection of $4.06. Next year’s forecast dropped 4 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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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