For Immediate Release
Chicago, IL –September 28, 2010 – Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List – Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Markel Corporation (MKL) and Flagstone Reinsurance Holdings SA (FSR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Sears Holdings Corporation (SHLD) and American Greetings Corporation (AM). To see the full Zacks #5 Rank List – Stocks to Sell Now visit: http://at.zacks.com/?id=5522
Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List of Stocks to Sell Now by 80% annually (+2% vs. +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 MKL and FSR 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:
Markel Corporation (MKL) posted second quarter earnings of $ 2.29 per share on August 9 while analysts had projected a profit of $ 3.94. The Zacks Consensus Estimate for the full year slipped 39 cents to $ 13.71 per share in the last 30 days as one analyst out of 9 reduced expectations. The following years expectations decreased 25 cents to a profit of 16.78 per share in that time span.
Flagstone Reinsurance Holdings SA (FSR) reported a second quarter profit of 25 cents per share on August 2, which fell 47% short of the Zacks Consensus Estimate. The full-year average dropped 7 cents to $1.14 per share in the past month, as one out of the 5 covering analysts slashed expectations. During that time, next year’s estimate declined 10 cents to $1.74 per share.
Here is a synopsis of why SHLD and AM 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;
Sears Holdings Corporation (SHLD) announced a second quarter loss of 19 cents per share on August 19, which was a penny higher than the Zacks Consensus Estimate. The full year average forecast fell 54 cents in the last two months to a profit of $2.04 as covering analysts slashed expectations. The following year’s estimates dropped 59 cents to a profit of $2.28 in the same time period.
American Greetings Corporation (AM) reported second quarter profit of 75 cents per share, posted on September 29, came in 4 cents lower than the average forecast. The Zacks Consensus Estimate for the current year is pegged at $2.73 which fell 4 cents in the past week as the only covering analyst slashed expectations. Next year’s projections declined 3 cents to a profit of $ 3.08.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; “Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions” is available to provide this insightful background. Download a free copy now to prosper in the years to come at http://at.zacks.com/?id=5523
Since 1988, the Zacks Rank has proven that “Earnings estimate revisions are the most powerful force impacting stock prices.” Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (+2% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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AMER GREETINGS (AM): Free Stock Analysis Report
FLAGSTONE REINS (FSR): Free Stock Analysis Report
MARKEL CORP (MKL): Free Stock Analysis Report
SEARS HLDG CP (SHLD): Free Stock Analysis Report
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