For Immediate Release
Chicago, IL – December 9, 2011 – 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): Foster Wheeler AG ( FWLT) and ITT Corporation ( ITT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Spectrum Brands Holdings, Inc. ( SPB) and Haemonetics Corporation ( HAE).
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 FWLT and ITT 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:
Foster Wheeler AG ( FWLT) announced third-quarter profit of 33 cents per share on November 2 that missed analysts’ expectations by 25%. The Zacks Consensus Estimate for the current year slid to $1.48 per share from $1.67 per share in the last 60 days as next year’s estimate dipped 31 cents per share to $1.92 per share in that time span.
ITT Corporation ( ITT) posted a third-quarter profit of $2.34 per share on October 28, which came in 2 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.51 per share from $9.49 per share over the past month. For 2012, analysts expect a profit of $1.69 per share, compared to last month’s projection for a profit of $8.53 per share.
Here is a synopsis of why SPB and HAE 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;
Spectrum Brands Holdings, Inc. ( SPB) fourth-quarter profit of 47 cents per share, posted on November 16, lagged analysts’ projections by 20.34%. Estimate for current year slid 38 cents per share to $2.46 per share over a month as next year’s estimate dipped 6 cents per share to $2.88 per share in that time span.
Haemonetics Corporation ( HAE) reported a second-quarter profit of 72 cents per share on October 31 that fell 6.49% short of the Zacks Consensus Estimate. The full-year average forecast is currently $3.06 per share, compared with last month’s projection of $3.09 per share. Next year’s forecast dropped to $3.58 per share from $3.66 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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