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Zacks Sell List Highlights: Thoratec Corporation, The Advisory Board Company, Pacific Biosciences of California and HEALTHSOUTH

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March 01, 2011 | Comment(s): 0
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THOR | ABCO | PACB | HLS

For Immediate Release

Chicago, IL – March 1, 2011 , 2011 – 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): Thoratec Corporation (THOR - Analyst Report) and The Advisory Board Company (ABCO - Snapshot Report). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Pacific Biosciences of California (PACB - Snapshot Report) and HEALTHSOUTH Corp. (HLS - Snapshot Report). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=5522

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 THOR and ABCO 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:

Thoratec Corporation (THOR - Analyst Report) announced fourth -quarter earnings of 25 cents per share on Jan 27 that missed analysts’ expectations by 7%. The Zacks Consensus Estimate for the current year slipped 14 cents to $1.23 per share in the last 60 days as all the covering analysts reduced estimates. Next year’s estimate dipped 25 cents to $1.37 per share in that time span.

The Advisory Board Company (ABCO - Snapshot Report) posted a third-quarter profit of 28 cents per share on Feb 3, which came in 4 cents wider than the average forecast. The diluted earnings per share fell 3 cents to a loss of 24 cents per share on a year- over- tear basis. The Zacks Consensus Estimate for the full year fell to a profit of $1.17 per share from $1.27 over the past month as 5 out of the 6 covering analysts slashed forecasts. For 2012, analysts expect a loss of 14 cents per share, compared to last month’s projection for a profit of $1.68 per share.

Here is a synopsis of why PACB and HLS 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;

Pacific Biosciences of California’s (PACB - Snapshot Report) fourth-quarter loss of 97 cents per share, posted on Feb 15, lagged analysts’ projections by nearly 7%. For 2011, the Zacks Consensus Estimate moved down 29 cents to a loss of $2.43 per share in the last 30 days as 4 analysts out of 5 cut back on forecasts. Estimate for next year slid 7 cents to a loss of $1.96 per share during that time period.

HEALTHSOUTH Corp. (HLS - Snapshot Report) reported a fourth-quarter profit of 37 cents per share on Feb 17 that fell 12% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.23 per share, compared with last week’s projection of $1.33. During that time, 12 analysts out of 16 revised downward. Next year’s forecast dropped 19 cents to $1.39 per share in the same period.

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=5523

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% versus +10%). 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.

Zacks “Profit from the Pros” e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5526

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5527

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Michael Vodicka
Company: Zacks.com
Phone: 312-265-9226
Email: pr@zacks.com
Visit: www.zacks.com

 

Read the full analyst report on THOR

Read the full analyst report on ABCO

Read the full analyst report on PACB

Read the full analyst report on HLS

 

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