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 RLJ and NAVG 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:
RLJ Lodging Trust (RLJ)announced second-quarter loss of 3 cents per share on August 10 that missed analysts? expectations by 107.14%. The Zacks Consensus Estimate for the current year slid to $1.38 per share from $1.41 per share in the last 60 days as next year?s estimate dipped 7 cents per share to $1.67 per share in that time span.
The Navigators Group, Inc (NAVG) posted a second-quarter profit of 51 cents per share on August 4, which came in 19 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.42 per share from $1.45 per share over the past two months. For 2012, analysts expect a profit of $2.89 per share, compared to last two month?s projection for a profit of $2.90 per share.
Here is a synopsis of why FDP and HI 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;
Fresh Del Monte Produce Inc. (FDP) second-quarter profit of 77 cents per share, posted on August 2, lagged analysts? projections by 18.09%. Estimate for current year slid 3 cents per share to $2.12 per share over a month as next year?s estimate dipped 12 cents per share to $2.51 per share in that time span.
Hillenbrand, Inc. (HI) reported a third-quarter profit of 38 cents per share on August 8 that fell 2.56% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.73 per share, compared with last month?s projection of $1.75 per share. Next year?s forecast dropped to $1.78 per share from $1.85 per share in the same period.
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