For Immediate Release
Chicago, IL – March 23, 2012 – 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): Fresh Del Monte Produce Inc. ( FDP) and Ralcorp Holdings, Inc. ( RAH). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: The J.M. Smucker Company ( SJM) and John Wiley & Sons Inc ( JW.A).
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 FDP and RAH 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:
Fresh Del Monte Produce Inc. ( FDP) announced fourth-quarter loss of 15 cents per share on February 28 that missed analysts’ expectations by 207.14%. The Zacks Consensus Estimate for the current year slid to $1.93 per share from $2.44 per share in the last 30 days as next year’s estimate dipped 62 cents per share to $2.20 per share in that time span.
Ralcorp Holdings, Inc. ( RAH) posted a first-quarter profit of $1.33 per share on February 7, which came in 5 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $3.88 per share from $3.90 per share over the past month. For 2013, analysts expect a profit of $4.12 per share, compared to last month’s projection for a profit of $4.13 per share.
Here is a synopsis of why SJM and JW.A 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;
The J.M. Smucker Company ( SJM) third-quarter profit of $1.22 per share, posted on February 16, lagged analysts’ projections by 13.48%. Estimate for current year slid 34 cents per share to $4.69 per share over two months as next year’s estimate dipped 33 cents per share to $5.25 per share in that time span.
John Wiley & Sons Inc ( JW.A) reported a third-quarter profit of 91 cents per share on March 8 that fell 3.19% short of the Zacks Consensus Estimate. The full-year average forecast is currently $3.14 per share, compared with last two month’s projection of $3.15 per share. Next year’s forecast dropped to $3.39 per share from $3.41 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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