For Immediate Release
Chicago, IL – March 5, 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 Elizabeth Arden, Inc. (RDEN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Monro Muffler Brake Inc (MNRO) and Quest Diagnostics Inc (DGX).
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 RDEN 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 6 cents per share to 96 cents in the last 30 days. Next year’s estimate also dipped 9 cents per share to $1.16 per share in that time span.
Elizabeth Arden, Inc. (RDEN) posted a second -quarter profit of $1.58 per share on February 07, which came in 5 cents wider than the average forecast. The Zacks Consensus Estimate for 2013 fell to a profit of $2.39 per share from $2.66 over the past month with 4 out of 4 covering analysts slashed forecasts. Next year’s forecasts slipped 15 cents to $3.04 per share in the same time span.
Here is a synopsis of why MNRO and DGX 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;
Monro Muffler Brake Inc (MNRO) third -quarter profit of 35 cents per share, posted on January 29, and lagged analysts’ projections by nearly 2.8%. For 2013, the Zacks Consensus Estimate moved down 14 cents to $1.30 in the last 60 days as 5 out of the 5 covering analysts cut back on forecasts. The forecast for next year slid 10 cents to $1.84 per share in the same time span.
Quest Diagnostics Inc (DGX) reported a fourth-quarter profit of $1.01 per share on January 23, that fell 3.8% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $4.41 per share, compared with the last 60 days projection of $4.84. Next year’s forecast dropped 38 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.
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