CHICAGO, Aug. 31, 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): ViaSat, Inc. (NASDAQ:VSAT) and Siemens AG (NYSE:SI).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Hill-Rom Holdings, Inc. (NYSE:HRC) and Owens & Minor, Inc. (NYSE:OMI).
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 VSAT and SI 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:
ViaSat, Inc. (NASDAQ:VSAT) announced first -quarter loss of 27 cents per share on August 10 which came behind the Zacks Consensus Estimate by 11 cents. The diluted earnings per share also fell by 68.75% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 51 cents per share to a loss of 71 cents in the last 30 days. Next year's estimate also dipped 70 cents per share to 69 cents per share in the same time span.
Siemens AG (NYSE:SI) posted a third -quarter profit of $1.64 per share on July 26, which came in 23 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $7.51 per share from $7.81 over the past month with 3 out of 7 covering analysts slashed forecasts. Next year's forecasts slipped 5 cents to $8.25 per share in the same time span.
Here is a synopsis of why HRC and OMI 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;
Hill-Rom Holdings, Inc. (NYSE:HRC) third-quarter profit of 56 cents per share, posted on July 26, lagged analysts projections by nearly 3.45%. For 2012, the Zacks Consensus Estimate moved down 24 cent in the last 60 days as none out of the 9 covering analysts cut back on forecasts. The forecast for next year slid 39 cents to $2.17 per share in the same time span.
Owens & Minor, Inc. (NYSE:OMI) reported a second-quarter profit of 48 cents per share on July 25, that fell 2.04% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $1.97 per share, compared with the last 60 days projection of $2.08. Next year's forecast dropped 8 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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