
CHICAGO, Jan. 27, 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): Volterra Semiconductor Corporation (NYSE: VLTR) and Delta Air Lines, Inc. (Nasdaq: DAL) Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Pharmasset, Inc. (Nasdaq: VRUS) and Fresenius Medical Care AG & Co. (NYSE: FMS). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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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 VLTR and DAL 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:
Volterra Semiconductor Corporation (NYSE: VLTR) reported fourth-quarter earnings per share of 13 cents on January 24, which came in 2 cents shy of the Zacks Consensus Estimate. The full-year average forecast dipped 6 cents to 89 cents per share in the last 7 days as 10 out of the 12 covering analysts lowered expectations. Next year's estimate dropped 11 cents to $1.44 per share in the same time span.
Delta Air Lines, Inc.'s (Nasdaq: DAL) fourth -quarter earnings of 19 cents per share, announced on January 18, lagged the Zacks Consensus Estimate by 6 cents. The average forecast for 2011 decreased 17 cents to a profit of $2.08 per share in the last 30 days. During that time period, the following year's estimate moved down 9 cents to $2.23 per share.
Here is a synopsis of why VRUS and FMS 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;
Pharmasset, Inc. (Nasdaq: VRUS) posted a fourth-quarter loss of 59 cents per share on November 23 while analysts projected a loss of 45 cents. The Zacks Consensus Estimate for the current year is pegged at a loss of $2.02 per share, a decline of 6 cents in the last 30 days. The average forecast for 2012 slid down 6 cents to a loss of $2.25 per share.
Fresenius Medical Care AG & Co. (NYSE: FMS) announced a third-quarter profit of 82 cents per share on November 2, which missed the analysts' estimates by a penny. The Zacks Consensus Estimate for the full year decreased by a penny to $3.23 per share over the past 60 days as the covering analysts reduced expectations. Estimates of 2011 also fell by a penny in a span of a week to $3.52 per share.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions" is available to provide this insightful background. Download a free copy now to prosper in the years to come at http://at.zacks.com/?id=93
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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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