For Immediate Release
Chicago, IL – March 26, 2013 – Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks Rank #5 List – Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): WMS Industries Inc. (WMS) and Cablevision Systems Corporation (CVC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Coach, Inc. (COH) and McCormick & Company, Incorporated (MKC).
Since inception in 1988, the S&P 500 has outperformed the Zacks Rank #5 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 WMS and CVC 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:
WMS Industries Inc. (WMS) announced second-quarter profit of 15 cents per share on February 06 which came behind the Zacks Consensus Estimate by 1 cent. The diluted earnings per share also fell by 44.44% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 3 cents per share to 94 cents in the last 30 days. Next year’s estimate also dipped 1 cent per share to $1.15 per share in that time span.
Cablevision Systems Corporation (CVC) posted a fourth -quarter loss of 30 cents per share on March 05, which came in 40 cents wider than the average forecast. The Zacks Consensus Estimate for 2013 fell to a profit of 39 cents per share from 71 cents over the past month with 6 out of 8 covering analysts slashed forecasts. Next year’s forecasts slipped 23 cents to 67 cents per share in the same time span.
Here is a synopsis of why COH and MKC 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;
Coach, Inc. (COH) second-quarter profit of $1.23 per share, posted on January 23, and lagged analysts’ projections by nearly 4.7%. For 2013, the Zacks Consensus Estimate moved down 5 cents to $3.72 in the last 30 days as 2 out of the 20 covering analysts cut back on forecasts. The forecast for next year slid 9 cents to $4.14 per share in the same time span.
McCormick & Company, Incorporated (MKC) reported a fourth-quarter profit of $1.11 per share on February 4, that fell 3.5% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $3.21 per share, compared with the last 60 days projection of $3.35 Next year’s forecast dropped 10 cents 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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