For Immediate Release
Chicago, IL – February 21, 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): AllianceBernstein Holding LP (AB - Free Report) and XL Group plc (XL - Free Report) . Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: General Cable Corporation and MeadWestvaco Corp. .
To see the full Zacks #5 Rank List - Stocks to Sell Now visit: https://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 AB and XL 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:
AllianceBernstein Holding LP (AB - Free Report) announced fourth-quarter profit of 7 cents per share on February 10 that missed analysts’ expectations by 66.67%. The Zacks Consensus Estimate for the current year slid to $1.03 per share from $1.12 per share in the last 30 days as next year’s estimate dipped 8 cents per share to $1.18 per share in that time span.
XL Group plc (XL - Free Report) posted a fourth-quarter loss of 25 cents per share on February 7, which came in 41 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.88 per share from $2.22 per share over the past month. For 2013, analysts expect a profit of $2.18 per share, compared to last month’s projection for a profit of $2.45 per share.
Here is a synopsis of why BGC and MWV 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;
General Cable Corporation’s fourth-quarter profit of 30 cents per share, posted on February 8, lagged analysts’ projections by 18.92%. Estimate for current year slid 33 cents per share to $2.70 per share over a month as next year’s estimate dipped 42 cents per share to $3.51 per share in that time span.
MeadWestvaco Corp. reported a fourth-quarter profit of 26 cents per share on January 25 that fell 10.34% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.78 per share, compared with last month’s projection of $1.98 per share. Next year’s forecast dropped to $2.15 per share from $2.23 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 https://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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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