Zacks Sell List Highlights: Health Net, Quality Systems, Orient-Express Hotels and Royal Caribbean Cruises
CHICAGO, Aug. 14, 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): Health Net, Inc. (NYSE:HNT) and Quality Systems, Inc. (NASDAQ:QSII).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Orient-Express Hotels Ltd. (NYSE:OEH) and Royal Caribbean Cruises Ltd. (NYSE:RCL).
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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 HNT and QSII 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:
Health Net, Inc. (NYSE:HNT) announced second -quarter profit of 53 cents per share on August 09 which came behind the Zacks Consensus Estimate by 13 cent. The diluted earnings per share also fell by 30.26% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped $1.25 per share to $1.01 in the last 30 days. Next year's estimate also dipped 90 cents per share to $2.10 per share in the same time span.
Quality Systems, Inc. (NASDAQ:QSII) posted a first -quarter profit of 26 cents per share on July 26, which came in 10 cent wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to $1.25 per share from $1.56 over the past month with 12 out of 16 covering analysts slashed forecasts. Next year's forecasts slipped 39 cents to $1.46 per share in the same time span.
Here is a synopsis of why OEH and RCL 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;
Orient-Express Hotels Ltd. (NYSE:OEH) second-quarter profit of 12 cents per share, posted on August 07, lagged analysts projections by nearly 14.29%. For 2012, the Zacks Consensus Estimate moved down 4 cents in the last 30 days as 3 out of the 4 covering analysts cut back on forecasts. The forecast for next year slid 4 cents to 31 cents per share in the same time span.
Royal Caribbean Cruises Ltd. (NYSE:RCL) reported a second-quarter profit of 3 cents per share on July 26, that fell 25.00% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $1.75 per share, compared with the last 30 days projection of $2.00. Next year's forecast dropped 27 cents per share in the same period.
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=93
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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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