CHICAGO, March 30, 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): Capella Education Company (Nasdaq: CPLA) and Casey General Stores, Inc. (Nasdaq: CASY). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: HEALTHSOUTH Corp. (NYSE: HLS) and Core-Mark Holding Company, Inc. (Nasdaq: CORE). 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 CPLA and CASY 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:
Capella Education Company (Nasdaq: CPLA) reported fourth-quarter earnings of $1.09 per share on Feb 15 that missed analysts' expectations by nearly 2%. The Zacks Consensus Estimate for the current year stands at a profit of $3.51 per share that dropped 8 cents over the past 30 days as the covering analysts' slashed projections. Estimated for next year dipped 83 cents in a span of two months.
Casey's General Stores, Inc. (Nasdaq: CASY) posted a third-quarter profit of 37 cents per share earlier this month, which lagged analysts' projections by 24%. The Zacks Consensus Estimate for 2011 dipped a penny to 23 cents per share in the last 30 days as 5 analysts out of 6 reduced expectations.
Here is a synopsis of why HLS and CORE 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;
HEALTHSOUTH Corp. (NYSE: HLS) reported a fourth-quarter profit of 37 cents per share on Feb 17 that fell 12% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.23 per share, compared with last week's projection of $1.33. During that time, 12 analysts out of 16 revised downward. Next year's forecast dropped 19 cents to $1.39 per share in the same period.
Core-Mark Holding Company, Inc. (Nasdaq: CORE) announced fourth-quarter earnings per share of 53 cents on March 16. Non - GAAP diluted EPS decreased 5.7% as compared to last year. The net income dipped $7.60 to $0.9.The average forecast for the current year fell 44 cents to $2.45 per share over the past 30 days both the covering analysts revised downward.
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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 +27%. 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 (-0.9% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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