Zacks Sell List Highlights: DeVry, P.H. Glatfelter, West Pharmaceutical Services and TRW Automotive Holdings
by PR Newswire
CHICAGO, Dec. 2, 2011 /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): DeVry Inc. (NYSE: DV) and P.H. Glatfelter Company (NYSE: GLT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: West Pharmaceutical Services Inc. (NYSE: WST) and TRW Automotive Holdings Corp. (NYSE: TRW).
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 DV and GLT 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:
DeVry Inc. (NYSE: DV)announced first-quarter profit of 83 cents per share on October 25 that missed analysts' expectations by 13.54%. The Zacks Consensus Estimate for the current year slid to $3.88 per share from $3.90 per share in the last 30 days as next year's estimate dipped 9 cents per share to $4.05 per share in that time span.
P.H. Glatfelter Company (NYSE: GLT) posted a third-quarter profit of 28 cents per share on November 1, which came in 6 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to 91 cents per share from $1 per share over the past month. For 2012, analysts expect a profit of $1.10 per share, compared to last month's projection for a profit of $1.35 per share.
Here is a synopsis of why WST and TRW 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;
West Pharmaceutical Services Inc. (NYSE: WST) third-quarter profit of 53 cents per share, posted on November 1, lagged analysts' projections by 3.64%. Estimate for current year slid 2 cents per share to $2.33 per share over two month's as next year's estimate dipped 1 cent per share to $2.60 per share in that time span.
TRW Automotive Holdings Corp. (NYSE: TRW) reported a third-quarter profit of $1.37 per share on November 2 that fell 2.14% short of the Zacks Consensus Estimate. The full-year average forecast is currently $7.14 per share, compared with last month's projection of $7.34 per share. Next year's forecast dropped to $6.32 per share from $6.57 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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