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 POWI and SANM 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:
Power Integrations, Inc. ( POWI ) announced third-quarter profit of 26 cents per share on November 3 that missed analysts? expectations by 13.33%. The Zacks Consensus Estimate for the current year slid to $1.14 per share from $1.33 per share in the last 60 days as next year?s estimate dipped 46 cents per share to $1.32 per share in that time span.
Sanmina-SCI Corporation ( SANM ) posted a fourth-quarter profit of 32 cents per share on November 1, which came in 5 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.28 per share from $1.51 per share over the past two months. For 2013, analysts expect a profit of $1.51 per share, compared to last two month?s projection for a profit of $1.66 per share.
Here is a synopsis of why LRN 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;
K12 Inc. ( LRN ) first-quarter profit of 18 cents per share, posted on November 15, lagged analysts? projections by 28%. Estimate for current year slid 6 cents per share to 62 cents per share over a month as next year?s estimate dipped 6 cents per share to $1.08 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 $3.28 per share. Next year?s forecast dropped to $4.32 per share from $4.71 per share in the same period.