CHICAGO, Aug. 10, 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): Hillshire Brands Co (NYSE:HSH) and Cal-Maine Foods Inc (NASDAQ:CALM).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Companhia de Bebidas das Americas (NYSE:ABV) and Helen of Troy Limited (NASDAQ:HELE).
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 HSH and CALM 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:
Hillshire Brands Co (NYSE:HSH)announced third -quarter profit of $1.00 per share on August 09 which came behind the Zacks Consensus Estimate by 25 cent. The diluted earnings per share also fell by 16.67% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped $3 per share to $1.56 in the last 30 days. Next year's estimate also dipped $3.67 per share to $1.61 per share in the same time span.
Cal-Maine Foods Inc (NASDAQ:CALM)posted a fourth -quarter profit of 44 cents per share on July 30, which came in 1 cent wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to $2.74 per share from $2.94 over the past month with 1 out of 3 covering analysts slashed forecasts. Next year's forecasts slipped 6 cents to $3.37 per share in the same time span.
Here is a synopsis of why ABV and HELE 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) second-quarter profit of 29 cents per share, posted on August 09, lagged analysts projections by nearly 17.14%. For 2012, the Zacks Consensus Estimate moved down 2 cents in the last 30 days as 2 out of the 6 covering analysts cut back on forecasts. The forecast for next year slid 3 cents to $1.84 per share in the same time span.
Helen of Troy Limited (NASDAQ:HELE) reported a first-quarter profit of 74 cents per share on July 25, that fell 15.91% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $3.75 per share, compared with the last 30 days projection of $3.82. Next year's forecast dropped 11 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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