For Immediate Release
Chicago, IL – August 3, 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): NIKE, Inc. (NKE) and Navistar International Corp (NAV).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Owens & Minor, Inc. (OMI) and BorgWarner Inc. (BWA).
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 NKE and NAV 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:
NIKE, Inc. (NKE) announced fourth -quarter profit of $1.17 per share on June 28 which came behind the Zacks Consensus Estimate by 20 cents. The diluted earnings per share also fell by 5.65% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 4 cents per share to $5.13 in the last 30 days. Next year’s estimate also dipped 2 cents per share to $5.86 per share in the same time span.
Navistar International Corp (NAV) posted a second -quarter loss of $1.99 per share on June 7, which came in $2.64 wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a loss of 44 cents per share from 22 cents over the past month with 2 out of 9 covering analysts slashed forecasts. Next year’s forecasts slipped 58 cents to $2.91 per share in the same time span.
Here is a synopsis of why OMI and BWA 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;
Owens & Minor, Inc. (OMI) second-quarter profit of 48 cents per share, posted on July 23, lagged analysts projections by nearly 2.04%. For 2012, the Zacks Consensus Estimate moved down 11 cent in the last 30 days as 8 out of the 9 covering analysts cut back on forecasts. The forecast for next year slid 8 cents to $2.14 per share in the same time span.
BorgWarner Inc. (BWA) reported a second-quarter profit of $1.36 per share on July 26, that fell 0.73% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $5.13 per share, compared with the last 30 days projection of $5.42. Next year’s forecast dropped 47 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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