CHICAGO, April 23, 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): Safety Insurance Group, Inc. (Nasdaq: SAFT) and Cellcom Israel Ltd. (NYSE: CEL). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Matthews International Corp (Nasdaq: MATW) and Navistar International Corporation (NYSE: NAV).
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 SAFT and CEL 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:
Safety Insurance Group, Inc. (Nasdaq: SAFT)announced fourth-quarter profit of 31 cents per share on March 8 that missed analysts' expectations by 47.46%. The Zacks Consensus Estimate for the current year slid to $3 per share from $3.05 per share in the last 60 days as next year's estimate dipped 7 cents per share to $3.08 per share in that time span.
Cellcom Israel Ltd. (NYSE: CEL) posted a fourth-quarter profit of 20 cents per share on March 7, which came in 36 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.48 per share from $2.28 per share over the past two months. For 2013, analysts expect a profit of $1.53 per share, compared to last two month's projection for a profit of $2.06 per share.
Here is a synopsis of why MATW and NAV 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;
Matthews International Corp (Nasdaq: MATW) second-quarter profit of 56 cents per share, posted on April 19, lagged analysts' projections by 3.45%. Estimate for current year slid 1 cent per share to $2.55 per share over a month as next year's estimate dipped 4 cents per share to $2.83 per share in that time span.
Navistar International Corporation (NYSE: NAV) reported a first-quarter loss of $2.08 per share on March 8 that fell 732% short of the Zacks Consensus Estimate. The full-year average forecast is currently $4.21 per share, compared with last month's projection of $4.42 per share. Next year's forecast dropped to $6.34 per share from $6.50 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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