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For Immediate Release
Chicago, IL – January 23, 2012 – 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): Kennedy-Wilson Holdings, Inc. ( (KW - Snapshot Report) and Transocean LTD ( (RIG - Analyst Report). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: TRW Automotive Holdings Corp. ( (TRW - Analyst Report) and West Pharmaceutical Services Inc. ( (WST - Snapshot Report).
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 KW and RIG 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:
Kennedy-Wilson Holdings, Inc. ( (KW - Snapshot Report) announced third-quarter loss of 16 cents per share on November 8 that missed analysts’ expectations by 220%. The Zacks Consensus Estimate for the current year decreased to a loss of 14 cents per share from a profit of 11 cents per share in the last 60 days while next year’s estimate increased from a loss of 19 cents per share to 29 cents per share in the same time span.
Transocean LTD ( (RIG - Analyst Report) posted a third-quarter profit of 3 cents per share on November 2, which came in 72 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.48 per share from $1.54 per share over the past month. For 2012, analysts expect a profit of $2.97 per share, compared to last month’s projection for a profit of $3.20 per share.
Here is a synopsis of why TRW and WST 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;
TRW Automotive Holdings Corp. ( (TRW - Analyst Report) third-quarter profit of $1.37 per share, posted on November 2, lagged analysts’ projections by 2.14%. Estimate for current year slid 6 cents per share to $7.08 per share over two months as next year’s estimate dipped 16 cents per share to $6.16 per share in that time span.
West Pharmaceutical Services Inc. ( (WST - Snapshot Report) reported a third-quarter profit of 53 cents per share on November 1 that fell 3.64% short of the Zacks Consensus Estimate. The full-year average forecast is currently $2.32 per share, compared with last two month’s projection of $2.33 per share. Next year’s forecast dropped to $2.58 per share from $2.60 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=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 +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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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