For Immediate Release
Chicago, IL – August 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): Matthews International Corp and NIKE, Inc. (NKE - Analyst Report).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: GlaxoSmithKline plc (GSK - Analyst Report) and BorgWarner Inc. (BWA - Analyst Report).
To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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 MATW and NKE 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:
Matthews International Corp announced third -quarter profit of 60 cents per share on July 19 which came behind the Zacks Consensus Estimate by 17 cents. The diluted earnings per share also fell by 16.67% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 17 cents per share to $2.34 in the last 60 days. Next year’s estimate also dipped 29 cents per share to $2.52 per share in the same time span.
NIKE, Inc. (NKE - Analyst Report) announced fourth -quarter profit of $1.17 per share on June 28 which came behind the Zacks Consensus Estimate by 20 cents.The Zacks Consensus Estimate for the current year slipped 64 cents per share to $5.13 in the last 60 days. Next year’s estimate also dipped 29 cents per share to $5.85 per share in the same time span.
Here is a synopsis of why GSK and BWA 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;
GlaxoSmithKline plc (GSK - Analyst Report) second-quarter profit of 82 cents per share, posted on July 25, lagged analysts projections by nearly 2.38%. For 2012, the Zacks Consensus Estimate moved down 9 cent in the last 30 days as 7 out of the 8 covering analysts cut back on forecasts. The forecast for next year slid 10 cents to $4.01 per share in the same time span.
BorgWarner Inc. (BWA - Analyst Report) reported a second-quarter profit of $1.36 per share on July 26, that fell 0.73% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $5.13 per share, compared with the last 30 days projection of $5.36. Next year’s forecast dropped 64 cents 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.
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=94
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT 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=95
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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.
Zacks Investment Research
800-767-3771 ext. 9339