For Immediate Release
Chicago, IL – November 27, 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): Health Management Associates, Inc. (HMA) and Spectrum Brands Holdings, Inc. (SPB). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Tim Hortons Inc. (THI) and Hatteras Financial Corp. (HTS).
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 HMA 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:
Health Management Associates, Inc. (HMA) announced third -quarter profit of 18 cents per share on October 22 which came behind the Zacks Consensus Estimate by 1 cent. The diluted earnings per share also fell by 5.26% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 1cent per share to 81 cents in the last 30 days. Next year’s estimate also dipped 1 cent per share to 90 cents per share in that time span.
Spectrum Brands Holdings, Inc. (SPB) posted a fourth -quarter profit of 50 cents per share on November 14, which came in 10 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $2.96 per share from $3.03 over the past month with 1 out of 3 covering analysts slashed forecasts. Next year’s forecasts slipped 9 cents to $3.56 per share in the same time span.
Here is a synopsis of why THI and HTS 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;
Tim Hortons Inc. (THI) third -quarter profit of 72 cents per share, posted on November 8, lagged analysts projections by nearly 1.37%. For 2012, the Zacks Consensus Estimate moved down 1 cent in the last 30 days as 4 out of the 10 covering analysts cut back on forecasts. The forecast for next year slid 5 cents to $3.03 per share in the same time span.
Hatteras Financial Corp. (HTS) reported a third-quarter profit of 83 cents per share on October 24, that fell 1.19% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $3.35 per share, compared with the last 30 days projection of $3.45. Next year’s forecast dropped 24 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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