CHICAGO, June 19, 2012 /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): Calavo Growers, Inc. (Nasdaq:CVGW) and Post Holdings Inc (NYSE:POST).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Companhia de Bebidas das Americas (NYSE:ABV) and International Speedway Corporation (Nasdaq:ISCA).To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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 CVGW 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:
Calavo Growers, Inc. (Nasdaq:CVGW) announced second -quarter profit of 30 cents per share on June 11 which came behind the Zacks Consensus Estimate by 15 cents. However, the diluted earnings per share rose by 87.5% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 23 cents per share to $1.40 in the last 60 days. Next year's estimate also dipped 14 cents per share to $1.77 per share in that time span.
Post Holdings Inc (NYSE:POST) posted a second -quarter profit of 39 cents per share on May 25, 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 month with both 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 ABV and ISCA 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;
Companhia de Bebidas das Americas' (NYSE:ABV) first-quarter profit of 40 cents per share, posted on April 30, lagged analysts projections by nearly 11.11 %. For 2012, the Zacks Consensus Estimate moved down 5 cents in the last 30 days as 2 out of the 6 covering analysts cut back on forecasts. The forecast for next year slid 8 cents to $1.88 per share in the same time span.
International Speedway Corporation (Nasdaq:ISCA) reported a first-quarter profit of 37 cents per share on April 10, that fell 11.9% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $1.58 per share, compared with the last 60 days projection of $1.59. Next year's forecast dropped 4 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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