Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List - Stocks to Sell Now by 80% annually (+2% versus +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 DIOD and NXPI 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:
Diodes Incorporated ( DIOD ) announced third-quarter profit of 26 cents per share on November 8 that missed analysts? expectations by 23.53%. The Zacks Consensus Estimate for the current year slid to $1.24 per share from $1.54 per share in the last 60 days as next year?s estimate dipped 33 cents per share to $1.12 per share in that time span.
NXP Semiconductors NV ( NXPI ) posted a third-quarter profit of 50 cents per share on November 1, which came in 1 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.70 per share from $2.02 per share over the past two months. For 2012, analysts expect a profit of $1.64 per share, compared to last two month?s projection for a profit of $2.49 per share.
Here is a synopsis of why TFM and ANF 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;
The Fresh Market Inc ( TFM ) third-quarter profit of 19 cents per share, posted on November 30, lagged analysts? projections by 5.00%. Estimate for current year slid 4 cents per share to $1.06 per share over a month as next year?s estimate dipped 4 cents per share to $1.32 per share in that time span.
Abercrombie & Fitch Co. ( ANF ) reported a third-quarter profit of 57 cents per share on November 16 that fell 21.92% short of the Zacks Consensus Estimate. The full-year average forecast is currently $2.79 per share, compared with last two month?s projection of $3.27 per share. Next year?s forecast dropped to $4.32 per share from $4.71 per share in the same period.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.