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 BKS and RSTI 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:
Barnes & Noble, Inc. ( BKS ) announced second-quarter loss of 17 cents per share on December 1 that missed analysts? expectations by 950%. The Zacks Consensus Estimate for the current year widened to a loss of $1.09 per share from a loss of 57 cents per share in the last 60 days as next year?s estimate dipped 65 cents per share to a loss of 41 cents per share in that time span.
Rofin-Sinar Technologies ( RSTI ) posted a first-quarter profit of 28 cents per share on February 2, which came in 8 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.44 per share from $1.73 per share over the past month. For 2013, analysts expect a profit of $1.97 per share, compared to last month?s projection for a profit of $2.17 per share.
Here is a synopsis of why JW.A and IGT 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;
John Wiley & Sons Inc ( JW.A ) second-quarter profit of 83 cents per share, posted on December 8, lagged analysts? projections by 17%. Estimate for current year slid 5 cents per share to $3.14 per share over a month as next year?s estimate dipped 3 cents per share to $3.41 per share in that time span.
International Game Technology ( IGT ) reported a first-quarter profit of 17 cents per share on January 24 that fell 22.73% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1 per share, compared with last month?s projection of $1.06 per share. Next year?s forecast dropped to $1.18 per share from $1.23 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.