For Immediate Release
Chicago, IL – November 22, 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): BEAM Inc ( BEAM) and Steris Corporation ( STE). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Leggett & Platt, Inc. ( LEG) and Cablevision Systems Corporation ( CVC).
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 BEAM and STE 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:
BEAM Inc ( BEAM) announced third-quarter profit of 53 cents per share on November 3 that missed analysts’ expectations by 10.17%. The Zacks Consensus Estimate for the current year slid to $2.32 per share from $2.89 per share in the last 60 days as next year’s estimate dipped 53 cents per share to $2.61 per share in that time span.
Steris Corporation ( STE) posted a second-quarter profit of 46 cents per share on November 2, which came in 11 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $2.26 per share from $2.32 per share over the past month. For 2013, analysts expect a profit of $2.56 per share, compared to last month’s projection for a profit of $2.73 per share.
Here is a synopsis of why LEG and CVC 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;
Leggett & Platt, Inc. ( LEG) third-quarter profit of 31 cents per share, posted on October 27, lagged analysts’ projections by 13.89%. Estimate for current year slid 15 cents per share to $1.19 per share over a month as next year’s estimate dipped 29 cents per share to $1.41 per share in that time span.
Cablevision Systems Corporation ( CVC) reported a third-quarter profit of 17 cents per share on October 28 that fell 46.87% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.09 per share, compared with last month’s projection of $1.26 per share. Next year’s forecast dropped to $1.23 per share from $1.45 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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