Zacks Sell List Highlights: Cedar Fair, Titanium Metals, Guess? and IAC/InterActive
CHICAGO, Jan. 3, 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): Cedar Fair, L.P. (NYSE: FUN) and Titanium Metals Corp (NYSE: TIE). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Guess?, Inc. (NYSE: GES) and IAC/InterActiveCorp (NASDAQ: IACI).
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 FUN and TIE 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:
Cedar Fair, L.P. (NYSE: FUN) announced third-quarter profit of $2.51 per share on November 8 which came behind the Zacks Consensus Estimate by 41 cents. The diluted earnings per share also fell by 8.39% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 30 cents per share to $2.0 in the last 60 days. Next year's estimate also dipped 22 cents per share to $2.34 per share in that time span.
Titanium Metals Corp (NYSE: TIE) posted a first -quarter profit of 12 cents per share on November 11, which came in 4 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of 60 cents per share from 65 cents over the past month with none out of 4 covering analysts slashed forecasts. Next year's forecasts slipped 6 cents to 84 cents per share in the same time span.
Here is a synopsis of why GES and IACI 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;
Guess?, Inc. (NYSE: GES) third -quarter profit of 43 cents per share, posted on November 28, and lagged analysts' projections by nearly 2.27%. For 2012, the Zacks Consensus Estimate moved down 2 cents in the last 30 days as 1 out of the 8 covering analysts cut back on forecasts. The forecast for next year slid 8 cents to $2.32 per share in the same time span.
IAC/InterActiveCorp (NASDAQ: IACI) reported a third-quarter profit of 47 cents per share on November 8, that fell 7.84% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $2.29 per share, compared with the last 60 days projection of $2.30. 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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