CHICAGO, June 7, 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): Safety Insurance Group, Inc. (Nasdaq: SAFT) and Endurance Specialty Holdings Ltd. (NYSE: ENH). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: China Shengda Packaging Group Inc. (Nasdaq: CPGI) and MAKO Surgical Corp. (Nasdaq: MAKO). 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 SAFT and ENH 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 first -quarter loss of 23 cents per share on May 4 that missed analysts' expectations by 133%. This apart the earnings also missed the previous year's results by 69%. The Zacks Consensus Estimate for the current year slipped 35 cents to $3.02 per share in the last 60 days. Next year's estimate dipped a couple of cents to $3.29 per share in that time span.
Endurance Specialty Holdings Ltd. (NYSE: ENH) posted a first-quarter loss of $2.42 per share on May 2, which came in 18 cents wider than the average forecast. The diluted earnings per share fell 147% to a loss of $2.25 on March 2011 as compared to results of March 2010. The Zacks Consensus Estimate for the full year fell $1.17 per share to a profit of 49 cents per share over the past month reflecting cuts by all the 7 covering analysts. For 2012, analysts expect a profit of $5.00 per share, compared to projections of a profit of $5.03 per share in a span of 7 days.
Here is a synopsis of why CPGI and MAKO 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;
China Shengda Packaging Group Inc.'s (Nasdaq: CPGI) first-quarter earnings of 9 cents per share, posted on May 13, lagged analysts' projections by nearly 36%. For 2011, the Zacks Consensus Estimate moved down 26 cents to a profit of 32 cents per share in the last 30 days as both the covering analysts cut back on forecasts. Estimate for next year slid 37 cents to a profit of 41 cents per share during the same time span.
MAKO Surgical Corp. (Nasdaq: MAKO) reported a first-quarter loss of 27 cents per share on May 3, that fell 12% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at a loss of 83 cents per share, compared to projections of a loss of 81 cents per share made 30 days back. Next year's forecast dropped 1 cent to a loss of 33 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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