CHICAGO, April 24, 2013 /PRNewswire/ -- Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks Rank #5 List – Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): AngloGold Ashanti Limited (NYSE:AU) and Orient-Express Hotels Ltd. (NYSE:OEH). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Teva Pharmaceutical Industries Ltd (NYSE:TEVA) and Cytec Industries Inc (NYSE:CYT).
Since inception in 1988, the S&P 500 has outperformed the Zacks Rank #5 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 AU and OEH 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:
AngloGold Ashanti Limited (NYSE:AU) announced fourth-quarter profit of 28 cents per share on March 08 which came behind the Zacks Consensus Estimate by 58 cents. The diluted earnings per share also fell by 60.56% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 45 cents per share to $2.98 in the last 30 days. Next year's estimate also dipped $1.13 per share to $3.09 per share in that time span.
Orient-Express Hotels Ltd. (NYSE:OEH) posted a fourth -quarter loss of 11 cents per share on February 21, which came in 8 cents wider than the average forecast. The Zacks Consensus Estimate for 2013 fell to a profit of 24 cents per share from 38 cents over the past month. Next year's forecasts slipped 13 cents to 34 cents per share in the same time span.
Here is a synopsis of why TEVA and CYT 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;
Teva Pharmaceutical Industries Ltd
(NYSE:TEVA) fourth-quarter profit of $1.32 per share, posted on February 13, and lagged analysts' projections by nearly 0.8%. For 2013, the Zacks Consensus Estimate moved down 1 cent to $5.08 in the last 30 days as 3 out of the 18 covering analysts cut back on forecasts. The forecast for next year slid 6 cents to $5.49 per share in the same time span.
Cytec Industries Inc (NYSE:CYT) reported a first-quarter profit of 75 cents per share on April 18, that fell nearly 12.8% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $4.64 per share, compared with the last 30 days projection of $4.79. Next year's forecast dropped 7 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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