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 SHLD and ONXX 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:
Sears Holding Corporation (SHLD) announced second-quarter loss of $1.13 per share on August 18 that missed analysts? expectations by 76.56%. The Zacks Consensus Estimate for the current year slipped to a loss of $1.67 per share from $1.02 per share in the last 30 days as next year?s estimate dipped 30 cents per share to a loss of 54 cents per share in that time span.
Onyx Pharmaceuticals, Inc. (ONXX) posted a second-quarter loss of 43 cents per share on August 3, which came in 9 cent wider than the average forecast. The Zacks Consensus Estimate for the full year fell to a loss of $1.94 per share from $1.48 per share over the past month. For 2012, analysts expect a loss of $1.20 per share, compared to last month?s projection for a loss of 80 cents per share.
Here is a synopsis of why DORM and CMP 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;
Dorman Products, Inc. (DORM) second-quarter profit of 70 cents per share, posted on July 26, lagged analysts? projections by 4.11%. Estimate for current year slid 10 cents per share to $2.87 per share over a month as next year?s estimate dipped 18 cents per share to $3.13 per share in that time span.
Compass Minerals International, Inc. (CMP) reported a second-quarter profit of 42 cents per share on July 28 that fell 12.50% short of the Zacks Consensus Estimate. The full-year average forecast is currently $5.01 per share, compared with last month?s projection of $5.40 per share. Next year?s forecast dropped to $5.94 per share from $6.42 per share in the same period.
