For Immediate Release
Chicago, IL – September 5, 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): GulfMark Offshore, Inc. (GLF) and Petroleo Brasileiro Petrobras SA (PBR).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Energizer Holdings, Inc. (ENR) and Royal Caribbean Cruises Ltd. (RCL).
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 GLF and PBR 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:
GulfMark Offshore, Inc. (GLF) announced second -quarter profit of 49 cents per share on July 24 which came behind the Zacks Consensus Estimate by 17 cents. The diluted earnings per share also fell by 3.92% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 15 cents per share to $1.81 in the last 30 days. Next year’s estimate also dipped 15 cents per share to $3.93 per share in the same time span.
Petroleo Brasileiro Petrobras SA (PBR) announced second -quarter loss of 10 cents per share on August 6 which came behind the Zacks Consensus Estimate by 43 cents. The Zacks Consensus Estimate for the current year slipped 13 cents per share to $2.49 in the last 30 days. Next year’s estimate also dipped 8 cents per share to $2.88 per share in the same time span.
Here is a synopsis of why ENR and RCL 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;
Energizer Holdings, Inc. (ENR) third-quarter profit of $1.18 per share, posted on August 01, lagged analysts projections by nearly 10.61%. For 2012, the Zacks Consensus Estimate moved down 11 cent in the last 60 days as none out of the 11 covering analysts cut back on forecasts. The forecast for next year slid 23 cents to $6.33 per share in the same time span.
Royal Caribbean Cruises Ltd. (RCL) reported a second-quarter profit of 3 cents per share on July 26, that fell 25.00% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $1.76 per share, compared with the last 30 days projection of $1.75. Next year’s forecast dropped 1 cent 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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