Zacks Sell List Highlights: Advisory Board Co., Columbia Sportswear, Family Dollar Stores and ArthroCare
Zacks Equity Research
For Immediate Release
Chicago, IL – March 8, 2013 – Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks Rank #5 List – Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): The Advisory Board Company (ABCO) and Columbia Sportswear Company (COLM). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Family Dollar Stores, Inc. (FDO) and ArthroCare Corporation (ARTC).
Since inception in 1988, the S&P 500 has outperformed the Zacks Rank #5 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 ABCO and COLM 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 Advisory Board Company (ABCO) announced third-quarter profit of 22 cents per share on February 06 which came behind the Zacks Consensus Estimate by 3 cents. The diluted earnings per share also fell by 6.38% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 9 cents per share to 92 cents in the last 30 days. Next year’s estimate also dipped 21 cents per share to $1.03 per share in that time span.
Columbia Sportswear Company (COLM) posted a fourth -quarter profit of $1.15 per share on February 07, which came in 5 cents wider than the average forecast. The Zacks Consensus Estimate for 2013 fell to a profit of $2.86 per share from $3.28 over the past month with 5 out of 7 covering analysts slashed forecasts. Next year’s forecasts slipped 44 cents to $3.28 per share in the same time span.
Here is a synopsis of why FDO and ARTC 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;
Family Dollar Stores, Inc. (FDO) first-quarter profit of 69 cents per share, posted on January 10, and lagged analysts’ projections by nearly 6.76%. For 2013, the Zacks Consensus Estimate moved down 1 cent to $3.98 in the last 30 days as 2 out of the 21 covering analysts cut back on forecasts. The forecast for next year slid 1 cent to $4.46 per share in the same time span.
ArthroCare Corporation (ARTC) reported a fourth-quarter profit of 30 cents per share on February 14, that fell 16.67% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $1.45 per share, compared with the last 30 days projection of $1.46 Next year’s forecast dropped 2 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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