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 TUP and NE 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:
Tupperware Brands Corp. (TUP) posted second-quarter earnings of 93 cents per share on July 19, compared to the Zacks Consensus Estimate of 97 cents. The full-year average forecast slipped 13 cents to a profit of $3.57 per share over the past week as 7 analysts out of 8 cut back on expectations. Next year’s estimate slid 6 cents to $4.09 per share in that time period.
Noble Corp’s (NE) second-quarter earnings of 85 cents per share, reported on July 9, declined 45% year over year. This apart, earnings missed analysts’ expectations by almost 23%. For 2010, the Zacks Consensus Estimate moved down 28 cents to $4.24 per share in the last 7 days, reflecting reductions by 11 out of 29 analysts. During that time, the following year’s average forecast dropped 9 cents to $4.67 per share.
Here is a synopsis of why GENZ and GHL 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;
Genzyme Corp. (GENZ) announced second-quarter earnings of 6 cents per share yesterday, which came in nearly 83% short of analysts’ expectations. Revenues decreased to $1.08 billion from $1.23 billion. The Zacks Consensus Estimate for 2010 dipped 6 cents to $1.94 per share in the last 30 days as 2 analysts out of 4 reduced forecasts. Estimate for 2011 is $3.37 per share, which fell 6 cents in the same period.
Greenhill & Co., Inc. (GHL) reported second-quarter earnings of 57 cents per share on July 21 while analysts anticipated a profit of 62 cents. The Zacks Consensus Estimate for the full year declined 15 cents to $2.30 per share in the last month as 2 analysts out of 7 slashed projections. Forecast for next year plunged 14 cents to $3.80 per share in that time span.
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