CHICAGO, March 13, 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): KBW, Inc. (NYSE: KBW) and Validus Holdings, Ltd. (NYSE: VR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: RTI International Metals, Inc. (NYSE: RTI) and Coeur d'Alene Mines Corporation (NYSE: CDE).
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 KBW and VR 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:
KBW, Inc. (NYSE: KBW) announced fourth-quarter loss of 28 cents per share on February 23 that missed analysts' expectations by 1,500%. The Zacks Consensus Estimate for the current year slid to 89 cents per share from $1.12 per share in the last 30 days as next year's estimate dipped 19 cents per share to $1.74 per share in that time span.
Validus Holdings, Ltd. (NYSE: VR) posted a fourth-quarter profit of 21 cents per share on February 2, which came in 58 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $4.04 per share from $4.51 per share over the past two months. For 2013, analysts expect a profit of $4.70 per share, compared to last two month's projection for a profit of $4.85 per share.
Here is a synopsis of why RTI and CDE 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;RTI International Metals, Inc. RTI
) fourth-quarter profit of 4 cents per share, posted on February 7, lagged analysts' projections by 60%. Estimate for current year slid 45 cents per share to 56 cents per share over two months as next year's estimate dipped $1 per share to $1.20 per share in that time span.
Coeur d'Alene Mines Corporation (NYSE: CDE) reported a fourth-quarter profit of 46 cents per share on February 23 that fell 11.54% short of the Zacks Consensus Estimate. The full-year average forecast is currently $2.44 per share, compared with last month's projection of $3 per share. Next year's forecast dropped to $3.05 per share from $3.18 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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