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 PFCB and WMMVY 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:
P.F. Chang’s China Bistro (PFCB) announced second-quarter profit of 40 cents per share on July 27 that missed analysts? expectations by 27.27%. The Zacks Consensus Estimate for the current year slipped to $1.63 per share from $2.09 per share in the last 30 days as next year?s estimate dipped 60 cents per share to $1.81 per share in that time span.
Wal-mart de Mexico S A B de CV (WMMVY) posted a second-quarter profit of 22 cents per share on July 19, which came in 1 cent wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.06 per share from $1.07 per share over the past month. For 2012, analysts expect a profit of $1.26 per share, compared to last month?s projection for a profit of $1.29 per share.
Here is a synopsis of why IPAR and FO 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;
Inter Parfums, Inc. (IPAR) second-quarter profit of 16 cents per share, posted on August 9, lagged analysts? projections by 30.43%. Estimate for current year slid 3 cents per share to $1.06 per share over a month as next year?s estimate dipped 2 cents per share to $1.25 per share in that time span.
Fortune Brands, Inc. (FO) reported a second-quarter profit of 93 cents per share on August 4 that fell 4.12% short of the Zacks Consensus Estimate. The full-year average forecast is currently $3 per share, compared with last month?s projection of $3.25 per share. Next year?s forecast dropped to $3.49 per share from $3.79 per share in the same period.
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