CHICAGO, Oct. 21, 2011 /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): Fresh Del Monte Produce Inc. (NYSE: FDP) and HONDA MOTOR CO., LTD. (NYSE: HMC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Triple-S Management Corp. (NYSE: GTS) and Bio-Rad Laboratories, Inc. (NYSE: BIO).
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 HMC 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. (NYSE: FDP) announced second-quarter profit of 77 cents per share on August 2 that missed analysts' expectations by 18.09%. The Zacks Consensus Estimate for the current year slid to $2.08 per share from $2.15 per share in the last 30 days as next year's estimate dipped 18 cents per share to $2.45 per share in that time span.
HONDA MOTOR CO., LTD. (NYSE: HMC) fourth-quarter profit of 44 cents per share, posted on August 4, lagged analysts' projections by 16.98%. Estimate for current year slid 4 cents per share to $1.79 per share over a month as next year's estimate dipped 6 cents per share to $2.07 per share in that time span.
Here is a synopsis of why GTS and BIO 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;
Triple-S Management Corp. (NYSE: GTS) second-quarter profit of 39 cents per share, posted on August 3, lagged analysts' projections by 31.58%. Estimate for current year slid 4 cents per share to $2.08 per share over two month's as next year's estimate dipped 2 cents per share to $2.35 per share in that time span.
Bio-Rad Laboratories, Inc. (NYSE: BIO) reported a second-quarter profit of $1.41 per share on August 2 that fell 4.08% short of the Zacks Consensus Estimate. The full-year average forecast is currently $5.92 per share, compared with last month's projection of $5.97 per share. Next year's forecast dropped to $6.82 per share from $6.91 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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