CHICAGO, Feb. 15, 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): New Jersey Resources Corporation. (NYSE: NJR) and Forestar Group Inc. (NYSE: FOR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: RTI International Metals, Inc. (NYSE: RTI) and Hospira, Inc. (NYSE: HSP). 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 NJR and FOR 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:
New Jersey Resources Corporation.'s (NYSE: NJR) first-quarter profit of 70 cents per share, announced on Feb 2, came in 20 cents lower than analysts' expectations. The Zacks Consensus Estimate for the full year declined 5 cents to a profit of $2.60 per share over the 30 days as the 3 out of the 6 covering analysts slashed forecasts.
Forestar Group Inc. (NYSE: FOR) posted a fourth-quarter loss of 17 cents per share on Feb 1 while analysts projected a loss of a penny. Total revenues fell 27 % to $22,852 thousand. The Zacks Consensus Estimate for 2011 fell 45 cents to a profit of 45 cents per share in the past month as both the covering analysts reduced expectations.
Here is a synopsis of why RTI and HSP 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.'s (NYSE: RTI) fourth-quarter loss per share of 23 cents, reported earlier this month, which missed analysts' expectations by nearly 156%. The full-year average forecast moved down 48 cents to a loss of 8 cents per share in the last 30 days, reflecting cuts by 6 out of 8 analysts. Next year's forecast fell 15 cents to a profit of $1.10 per share in the same period.
Hospira, Inc. (NYSE: HSP) reported fourth-quarter earnings of 70 cents per share on Feb 2, which came in 16 cents shy of the average forecast. The diluted earnings per share fell $0.22 to $0.36 per share on a year over year basis. The Zacks Consensus Estimate for the current year fell 37 cents to a profit of $3.95 per share in the last month as 9 analysts out of 12 revised downward. Next year's estimate dipped by 22 cents to $4.57 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 +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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