CHICAGO, March 3, 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): Crucell N.V. (ADR) (Nasdaq : CRXL) and Avon Products, Inc. (NYSE : AVP). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Bemis Company, Inc. (Nasdaq : BMS) and Carpenter Technology Corporation (NYSE : CRS). 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 CRXL and AVP 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:
Crucell N.V. (ADR) (Nasdaq : CRXL) announced a fourth-quarter loss of 12 cents per share on Feb 8, which was 2 cents wider than the Zacks Consensus Estimate. The company posted their earnings per share which fell by 147% on a year-over-year basis. For 2011, the average forecast fell 4 cents fell 4 cents to a profit of 61 cents per share from 57 cents in the last 7 days.
Avon Products, Inc. (NYSE : AVP) posted fourth-quarter earnings of 59 cents per share on Feb 8 while analysts projected a profit of 67 cents. The fourth quarter EPS fell 12 cents to 50 cents per share. The Zacks Consensus Estimate for the full year slipped 15 cents to $2.01 per share in the last 30 days as 15 analysts out of 16 reduced expectations. The following year's forecast decreased 15 cents to a profit of $2.26 per share in that time span.
Here is a synopsis of why BMS CRS 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;
Bemis Company, Inc. (Nasdaq : BMS) reported a fourth -quarter profit of 49 cent per share last month, which fell nearly 4% short of the Zacks Consensus Estimate. The full-year average forecast dropped 6 cents to $2.40 per share over the past month as 7 out of 11 covering analysts cut back on projections. During that time, next year's estimate declined 10 cents to $2.70 per share.
Carpenter Technology Corporation's (NYSE : CRS) second-quarter profit of 21 cents per share, posted on Jan 25, came in 3 cents worse than the average forecast. The Zacks Consensus Estimate for the current year is pegged at a profit of $1.26 cents per share, 12 cents wider than the projections made 60 days back. Next year's forecast fell 4 cents to a profit of $2.74 per share.
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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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