For Immediate Release
Chicago, IL – December 20, 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): Brookdale Senior Living, Inc. (BKD - Snapshot Report) and Best Buy Co., Inc. (BBY - Analyst Report). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Chemed Corporation (CHE - Snapshot Report) and E I Du Pont De Nemours And Co (DD - 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 BKD and BBY 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:
Brookdale Senior Living, Inc. (BKD - Snapshot Report) announced third -quarter loss of 10 cents per share on November 8 which came behind the Zacks Consensus Estimate by 7 cents. The diluted earnings per share also fell by 11.11% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 16 cents per share to a loss of 41 cents in the last 60 days. Next year’s estimate also dipped 15 cents per share to 1 cent per share in that time span.
Best Buy Co., Inc. (BBY - Analyst Report) posted a third -quarter profit of 3 cents per share on November 20, which came in 9 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $2.48 per share from $2.81 over the past month with 20 out of 20 covering analysts slashed forecasts. Next year’s forecasts slipped 44 cents to $2.24 per share in the same time span.
Here is a synopsis of why CHE and DD 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;
Chemed Corporation (CHE - Snapshot Report) third -quarter profit of $1.20 per share, posted on October 29, lagged analysts projections by nearly 1.64%. For 2012, the Zacks Consensus Estimate moved down 23 cents in the last 60 days as none out of the 2 covering analysts cut back on forecasts. The forecast for next year slid 11 cents to $4.46 per share in the same time span.
E I Du Pont De Nemours And Co (DD - Analyst Report) reported a third-quarter profit of 44 cents per share on October 23, that fell 4.35% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $3.37 per share, compared with the last 30 days projection of $3.98. Next year’s forecast dropped 38 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.
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