CHICAGO, April 5, 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): Nicor Inc. (NYSE: GAS) and Strategic Hotels & Resorts Inc. (NYSE: BEE). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: West Pharmaceutical Services Inc. (NYSE: WST) and Patterson Companies, Inc. (Nasdaq: PDCO). See the full Zacks #5 Rank List - Stocks to Sell Now visit
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 GAS and BEE 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:
Nicor Inc. (NYSE: GAS) reported fourth-quarter earnings of 87 cents per share on Feb 23, which came in 6% short of analysts' expectations. This came in 34 cents below the fourth quarter earnings on a year-over-year basis. The Zacks Consensus Estimate for 2011 fell 12 cents to $2.62 per share over the past month. Next year's forecast also dipped 12 cents to $2.77 per share in the last 60 days.
Strategic Hotels & Resorts Inc.'s (NYSE: BEE) fourth-quarter loss per share of a penny, announced on Feb 23, lagged the Zacks Consensus Estimate by 4 cents. The Zacks Consensus Estimate for the current year dropped a penny to 5 cents per share in the last month. Estimate for the following year also slid a penny to 34 cents per share during the same time span.
Here is a synopsis of why WST and PDCO 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;
West Pharmaceutical Services Inc. (NYSE: WST) posted a fourth-quarter earnings of 42 cents per share on Feb 17, which was far behind last year's earnings of 58 cents. The full-year average forecast fell by a penny per share $2.36 over the past week. Estimates for 2012 also fell by a penny in the same time span.
Patterson Companies, Inc. (Nasdaq: PDCO) announced third-quarter earnings of 47 cents per share last month, which missed analysts' projections by 2%. The Zacks Consensus Estimate for 2011 moved down to $1.88 per share in the last 30 days as the covering analysts pulled back on expectations. Next year's forecast declined 5 cents to $2.08 per share in a span of 60 days.
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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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