For Immediate Release
Chicago, IL – February 17, 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): Expedia Inc ( EXPE) and NII Holdings, Inc. ( NIHD). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Elan Corporation, plc (ELN) and Gentex Corporation ( GNTX).
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 EXPE and NIHD 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:
Expedia Inc ( EXPE) announced fourth-quarter profit of 50 cents per share on February 9 that missed analysts’ expectations by 16.67%. The Zacks Consensus Estimate for the current year slid to $2.41 per share from $3.46 per share in the last 30 days as next year’s estimate dipped 89 cents per share to $2.88 per share in that time span.
NII Holdings, Inc. ( NIHD) posted a four-quarter loss of 2 cents per share on February 23, which came in 61 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.36 per share from $1.51 per share over the past month. For 2012, analysts expect a profit of $1.50 per share, compared to last month’s projection for a profit of $1.79 per share.
Here is a synopsis of why ELN and GNTX 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;
Elan Corporation, plc’s (ELN) fourth-quarter loss of 8 cents per share, posted on February 7, lagged analysts’ projections by 166.67%. Estimate for current year slid 17 cents per share to 2 cents per share over a month as next year’s estimate dipped 22 cents per share to 13 cents per share in that time span.
Gentex Corporation ( GNTX) reported a fourth-quarter profit of 28 cents per share on January 31 that fell 6.67% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.29 per share, compared with last month’s projection of $1.38 per share. Next year’s forecast dropped to $1.51 per share from $1.72 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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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