For Immediate Release
Chicago, IL – July 20, 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): Hillshire Brands Co (HSH) and Post Holdings Inc (POST).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Westport Innovations Inc. (WPRT) and Stillwater Mining Company (SWC).
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 HSH and POST 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:
Hillshire Brands Co (HSH) announced third -quarter profit of $1 per share on May 3 which came behind the Zacks Consensus Estimate by 25 cents. The diluted earnings per share also fell by 16.67% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped $3 per share to $1.56 in the last 30 days. Next year’s estimate also dipped $3.67 per share to $1.59 per share in the same time span.
Post Holdings Inc (POST) posted a second -quarter profit of 39 cents per share on June 7, which came in 9 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $1.62 per share from $1.75 over the past two months with none out of 2 covering analysts slashed forecasts. Next year’s forecasts slipped 17 cents to $2.01 per share in the same time span.
Here is a synopsis of why WPRT and SWC 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;
Westport Innovations Inc. (USA (WPRT) first-quarter loss of 44 cents per share, posted on June 6, lagged analysts projections by nearly 37.50%. For 2012, the Zacks Consensus Estimate moved down 4 cent in the last 60 days as 2 out of the 14 covering analysts cut back on forecasts. The forecast for next year slid 4 cents to a loss of 75 cents per share in the same time span.
Stillwater Mining Company (SWC) reported a first-quarter profit of 4 cents per share on May 8, that fell 33.33% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at 42 cents per share, compared with the last 60 days projection of 43 cents. Next year’s forecast dropped 4 cents 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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