CHICAGO, Jan. 6, 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): Cameco Corporation (NYSE: CCJ) and Quad/Graphics, Inc. (NYSE: QUAD). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Energizer Holdings, Inc. (NYSE: ENR) and West Pharmaceutical Services Inc. (NYSE: WST).
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 CCJ and QUAD 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:
Cameco Corporation (NYSE: CCJ) announced third-quarter profit of 26 cents per share on November 7 that missed analysts' expectations by 16.13%. The Zacks Consensus Estimate for the current year slid to $1.01 per share from $1.14 per share in the last 60 days as next year's estimate dipped 11 cents per share to $1.32 per share in that time span.
Quad/Graphics, Inc. (NYSE: QUAD) posted a third-quarter profit of 80 cents per share on November 10, which came in 2 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $2.13 per share from $2.89 per share over the past two months. For 2012, analysts expect a profit of $2.18 per share, compared to last two month's projection for a profit of $4.32 per share.
Here is a synopsis of why ENR and WST 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;
Energizer Holdings, Inc. (NYSE: ENR) fourth-quarter profit of $1.10 per share, posted on November 8, lagged analysts' projections by 12%. Estimate for current year slid 2 cents per share to $6.22 per share over two months as next year's estimate dipped 6 cents per share to $6.91 per share in that time span.
West Pharmaceutical Services Inc. (NYSE: WST) reported a third-quarter profit of 53 cents per share on November 1 that fell 3.64% short of the Zacks Consensus Estimate. The full-year average forecast is currently $2.32 per share, compared with last two month's projection of $2.33 per share. Next year's forecast dropped to $2.58 per share from $2.60 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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