For Immediate Release
Chicago, IL – December 16, 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): Avon Products, Inc. (NYSE:AVP - News) and WMS Industries Inc. (NYSE:WMS - News). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF - News) and Kellogg Company (NYSE:K - News).
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 AVP and WMS 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:
Avon Products, Inc. (NYSE:AVP - News) announced third-quarter profit of 38 cents per share on October 27 that missed analysts’ expectations by 17.39%. The Zacks Consensus Estimate for the current year slid to $1.78 per share from $1.80 per share in the last 30 days as next year’s estimate dipped 4 cents per share to $1.80 per share in that time span.
WMS Industries Inc. (NYSE:WMS - News) posted a first-quarter profit of 24 cents per share on November 7, which came in 5 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.53 per share from $1.60 per share over the past month. For 2013, analysts expect a profit of $1.79 per share, compared to last month’s projection for a profit of $1.87 per share.
Here is a synopsis of why KOF and K 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;
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF - News) third-quarter profit of 93 cents per share, posted on October 27, lagged analysts’ projections by 22.50%. Estimate for current year slid 13 cents per share to $4.63 per share over a month as next year’s estimate dipped 22 cents per share to $5.47 per share in that time span.
Kellogg Company (NYSE:K - News) reported a third-quarter profit of 80 cents per share on November 3 that fell 10.11% short of the Zacks Consensus Estimate. The full-year average forecast is currently $3.37 per share, compared with last two month’s projection of $3.48 per share. Next year’s forecast dropped to $3.54 per share from $3.56 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.
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