CHICAGO, Sept. 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): The Navigators Group, Inc (Nasdaq: NAVG) and Logitech International SA (Nasdaq: LOGI). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Sonoco Products Company (NYSE: SON) and AMERIGROUP Corporation (NYSE: AGP).
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 NAVG and LOGI 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:
The Navigators Group, Inc (Nasdaq: NAVG) announced second-quarter profit of 51 cents per share on August 4 that missed analysts' expectations by 27.14%. The Zacks Consensus Estimate for the current year slid to $1.42 per share from $1.70 per share in the last 60 days as next year's estimate dipped 17 cents per share to $2.89 per share in that time span.
Logitech International SA (Nasdaq: LOGI) posted a first-quarter loss of 17 cents per share on July 27, which came in 19 cent wider than the average forecast. The Zacks Consensus Estimate for the full year fell to 50 cents per share from 87 per share over the past two months. For 2013, analysts expect a profit of 84 cents per share, compared to last two month's projection for a profit of $1.09 per share.
Here is a synopsis of why SON and AGP 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;
Sonoco Products Company (NYSE: SON) second-quarter profit of 60 cents per share, posted on July 21, lagged analysts' projections by 4.76%. Estimate for current year slid 1 cent per share to $2.45 cents per share over a month as next year's estimate dipped 2 cents per share to $2.74 per share in that time span.
AMERIGROUP Corporation (NYSE: AGP) reported a second-quarter profit of 83 cents per share on July 29 that fell 24.55% short of the Zacks Consensus Estimate. The full-year average forecast is currently $4.02 per share, compared with last month's projection of $4.04 per share. Next year's forecast dropped to $4.27 per share from $4.29 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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