Zacks Sell List Highlights: Quest Diagnostics, Analogic, WellCare Health Plans and Honda Motor
Zacks Equity Research
For Immediate Release
Chicago, IL – February 1, 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): Quest Diagnostics Inc (DGX) and Analogic Corporation (ALOG). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: WellCare Health Plans, Inc. (WCG) and Honda Motor Co Ltd (HMC).
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 DGX and ALOG 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:
Quest Diagnostics Inc (DGX) announced fourth-quarter profit of $1.01 per share on January 23 which came behind the Zacks Consensus Estimate by 4 cents. The diluted earnings per share also fell by 17.89% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 43 cents per share to $4.41 in the last 30 days. Next year’s estimate also dipped 35 cents per share to $4.96 per share in that time span.
Analogic Corporation (ALOG) posted a first -quarter profit of 39 cents per share on December 06, which came in 30 cents wider than the average forecast. The Zacks Consensus Estimate for 2013 fell to a profit of $2.64 per share from $3.10 over the past two months with none out of 2 covering analysts slashed forecasts. Next year’s forecasts slipped 24 cents to $3.47 per share in the same time span.
Here is a synopsis of why WCG and HMC 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;
WellCare Health Plans, Inc. (WCG) third -quarter profit of $1.05 per share, posted on November 7, and lagged analysts’ projections by nearly 27.59%. For 2012, the Zacks Consensus Estimate moved down 2 cents in the last 30 days as 4 out of the 12 covering analysts cut back on forecasts. The forecast for next year slid 3 cents to $4.93 per share in the same time span.
Honda Motor Co Ltd (HMC) reported a third-quarter profit of 50 cents per share on January 31, that fell 29.58% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $2.97 per share, compared with the last 30 days projection of $3.06. Next year’s forecast dropped 10 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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