CHICAGO, Nov. 2, 2012 /PRNewswire/ -- 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): Air Products & Chemicals, Inc. (NYSE:APD and BJ's Restaurants, Inc. (NASDAQ:BJRI). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: AMERIGROUP Corporation (NYSE:AGP) and Genuine Parts Company (NYSE:GPC).
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 APD and BJRI 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:
Air Products & Chemicals, Inc. (NYSE:APD announced fourth -quarter profit of $1.42 per share on October 19 which came behind the Zacks Consensus Estimate by 2 cents. The diluted earnings per share also fell by 5.96% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 45 cents per share to $5.72 in the last 30 days. Next year's estimate also dipped 43 cents per share to $6.50 per share in that time span.
BJ's Restaurants, Inc. (NASDAQ:BJRI)posted a third -quarter profit of 24 cents per share on October 25, which came in 4 cent wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $1.13 per share from $1.25 over the past month with 17 out of 19 covering analysts slashed forecasts. Next year's forecasts slipped 19 cents to $1.35 per share in the same time span.
Here is a synopsis of why AGP and GPC 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;
AMERIGROUP Corporation (NYSE:AGP) second-quarter profit of 63 cents per share, posted on October 31, lagged analysts projections by nearly 8.7%. For 2012, the Zacks Consensus Estimate moved down 1 cent in the last 30 days as 2 out of the 15 covering analysts cut back on forecasts. The forecast for next year slid 1 cent to $5.04 per share in the same time span.
Genuine Parts Company (NYSE:GPC) reported a third-quarter profit of $1.11 per share on October 18, that fell 0.89% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $4.05 per share, compared with the last 30 days projection of $4.06. Next year's forecast dropped 4 cents per share in the same period.
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About the Zacks Rank
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 (2.8% versus +9.7%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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