CHICAGO, April 12, 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): Tutor Perini Corporation (NYSE: TPC) and SINA Corporation (Nasdaq: SINA). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Hanesbrands Inc. (NYSE: HBI) and Warnaco Group Inc. (NYSE: WRC).
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 TPC and SINA 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:
Tutor Perini Corporation (NYSE: TPC) announced fourth-quarter profit of 50 cents per share on March 1 that missed analysts' expectations by 33.33%. The Zacks Consensus Estimate for the current year slid to $2.17 per share from $2.52 per share in the last 60 days as next year's estimate dipped 25 cents per share to $2.48 per share in that time span.
SINA Corporation (Nasdaq: SINA) posted a fourth-quarter profit of 13 cents per share on February 27, which came in 3 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to 13 cents per share from 25 cents per share over the past month. For 2013, analysts expect a profit of 1 cent per share, compared to last month's projection for a profit of 98 cents per share.
Here is a synopsis of why HBI and WRC 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;
Hanesbrands Inc. (NYSE: HBI) fourth-quarter profit of 41 cents per share, posted on February 15, lagged analysts' projections by 19.61%. Estimate for current year slid 1 cent per share to $2.51 per share over a month as next year's estimate dipped 2 cents per share to $3.17 per share in that time span.
Warnaco Group Inc. (NYSE: WRC) reported a fourth-quarter profit of 97 cents per share on February 28 that fell 1.02% short of the Zacks Consensus Estimate. The full-year average forecast is currently $4.39 per share, compared with last two month's projection of $4.44 per share. Next year's forecast dropped to $4.94 per share from $5.07 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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