For Immediate Release
Chicago, IL –October 21, 2010 – 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): Vail Resorts, Inc. (MTN - Snapshot Report) and Collective Brands Inc. . Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: DaVita Inc. (DVA - Analyst Report) and Impax Laboratories, Inc. (IPXL - Analyst Report) . To see the full Zacks #5 Rank List - Stocks to Sell Now visit: https://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 MTN and PSS 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:
Vail Resorts, Inc.'s (MTN - Snapshot Report) fourth-quarter loss of $ 1.16 per share, announced on Sept 23, came in 8 cents wider than analysts’ expectations. Moreover the total net revenue fell $108.4 million to $868.6 million for Fiscal 2010. The Zacks Consensus Estimate for the full year declined 45 cents to a profit of $ 1.07 per share over the past month as 6 analysts out of 7 slashed forecasts.
Collective Brands Inc. posted a second-quarter earnings of 32 cents per share last month against analysts projections of 45 cents per share. The Zacks Consensus Estimate for 2010 slid 2 cents per share from $1.51 per share in the last 30 days as 1 analyst out of 8 reduced expectations. During that time, next year’s forecast slipped 5 cents to a profit of $1.67 per share.
Here is a synopsis of why DVA and IPXL 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;
DaVita Inc.'s (DVA - Analyst Report) reported second-quarter earnings per share of $ 1.06 per share, on Aug 2 which was a penny lower than the estimates. The full-year average forecast moved down a couple of cents at a profit of $4.35 per share in the last 30 days, reflecting cuts by 5 out of 13 analysts.
Impax Laboratories, Inc. (IPXL - Analyst Report) reported second-quarter earnings of 48 cents per share on Aug 3, which was a 3 cents less than the average forecast. The Zacks Consensus Estimate for the current year fell a cent to a profit of $3.06 per share in the last week as 2 analysts out of 9 revised downward. Next year’s estimate dipped by a penny to $1.34 per share in the same period.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Contact: Michael Vodicka