CHICAGO, Feb. 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): Johnson Controls, Inc. (NYSE: JCI) and AVX Corporation (NYSE: AVX). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Dole Food Company, Inc. (NYSE: DOLE) and Koninklijke Ahold N.V. (OTC: AHONY).
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To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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 JCI and AVX 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:
Johnson Controls, Inc. (NYSE: JCI) announced first-quarter profit of 60 cents per share on January 19 that missed analysts' expectations by 3.23%. The Zacks Consensus Estimate for the current year slid to $2.75 per share from $2.99 per share in the last 30 days as next year's estimate dipped 25 cents per share to $3.35 per share in that time span.
AVX Corporation (NYSE: AVX) posted a third-quarter profit of 22 cents per share on January 25, which came in 5 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.19 per share from $1.27 per share over the past month. For 2013, analysts expect a profit of $1.06 per share, compared to last month's projection for a profit of $1.18 per share.
Here is a synopsis of why DOLE and AHONY 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;
Dole Food Company, Inc. (NYSE: DOLE) third-quarter loss of 17 cents per share, posted on November 17, lagged analysts' projections by 70%. Estimate for current year slid 4 cents per share to $1.24 per share over a month as next year's estimate dipped 2 cents per share to $1.43 per share in that time span.
Koninklijke Ahold N.V. (OTC: AHONY) reported a third-quarter profit of 29 cents per share on November 17 that fell 3.33% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.13 per share, compared with last month's projection of $1.17 cents per share. Next year's forecast dropped to $1.28 per share from $1.32 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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