Zacks Sell List Highlights: CBRE Group, Companhia de Saneamento Basico, Globe Specialty Metals and Universal Health Services
CHICAGO, Jan. 4, 2013 /PRNewswire/ -- 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): CBRE Group Inc (NYSE: CBG) and Companhia de Saneamento Basico (NYSE: SBS). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Globe Specialty Metals, Inc. (NASDAQ: GSM) and Universal Health Services, Inc. (NYSE: UHS).
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 CBG and SBS 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:
CBRE Group Inc (NYSE: CBG) announced third -quarter profit of 26 cents per share on October 30 which came behind the Zacks Consensus Estimate by 7 cents. The Zacks Consensus Estimate for the current year slipped 4 cents per share to a loss of $1.16 in the last 60 days. Next year's estimate also dipped 8 cents per share to $1.36 per share in that time span.
Companhia de Saneamento Basico (NYSE: SBS) posted a third -quarter profit of $1.54 per share on November 21, which came in 59 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $7.87 per share from $8.35 over the past month with 1 out of 3 covering analysts slashed forecasts. Next year's forecasts slipped 91 cent to $8.35 per share in the same time span.
Here is a synopsis of why GSM and UHS 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;
Globe Specialty Metals, Inc. (NASDAQ: GSM) first -quarter profit of 16 cent per share, posted on November 7, lagged analysts projections by nearly 5.88%. For 2012, the Zacks Consensus Estimate moved down 13 cents in the last 60 days as 1 out of the 7 covering analysts cut back on forecasts. The forecast for next year slid 13 cents to 76 cents per share in the same time span.
Universal Health Services, Inc. (NYSE: UHS) reported a third-quarter profit of 92 cents per share on October 30, that fell 7.07% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $4.09 per share, compared with the last 60 days projection of $4.10. Next year's forecast dropped 5 cents 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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