CHICAGO, June 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): The Navigators Group, Inc (Nasdaq: NAVG) and Infinity Property and Casualty Corp. (Nasdaq: IPCC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Royal Gold, Inc. (Nasdaq: RGLD) and Koppers Holdings Inc. (NYSE: KOP). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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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 NAVG and IPCC 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:
The Navigators Group, Inc (Nasdaq: NAVG) announced first -quarter earnings of 43 cents per share on May 9 that missed analysts' expectations by 44%. This apart the earnings also missed the previous year's results by 44%. The Zacks Consensus Estimate for the current year slipped $1.49 to $1.70 per share in the last 30 days as all the 6 covering analysts reduced estimates. Next year's estimate dipped 31 cents to $3.06 per share in that time span.
Infinity Property and Casualty Corp. (Nasdaq: IPCC) posted a first-quarter earnings of 63 cents per share on May 5, which came in $1.04 lower than the average forecast. The diluted earnings per share fell 24% to a profit of 87 cents on March 2011 as compared to results of March 2010. Similarly net earnings all fell nearly 30% to $11.0 per share in the same period. The Zacks Consensus Estimate for the full year fell 87 cents to a profit of $3.64 per share from $4.51 over the past month reflecting cuts by all the 5 covering analysts. For 2012, analysts expect a profit of $3.87 per share, compared to projections of a profit of $4.49 per share in a span of 30 days.
Here is a synopsis of why RGLD and KOP 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;
Royal Gold, Inc.'s (Nasdaq: RGLD) third-quarter earnings of 35 cents per share, posted on May 5, lagged analysts' projections by nearly 10%. For 2011, the Zacks Consensus Estimate moved down a penny to a profit of $1.30 per share in the last 60 days as 1analyst out of 2 cut back on forecasts. Estimate for next year slid 7 cents to a profit of $1.75 per share during a period of 30 days.
Koppers Holdings Inc. (NYSE: KOP) reported a first-quarter earnings of 40 cents per share on May 5, that fell 5% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $2.95 per share, compared to projections of $2.98 made 30 days back. Next year's forecast dropped 1 cent to $3.42 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.
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