CHICAGO, Jan. 6, 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): State Auto Financial (Nasdaq: STFC) and TFS Financial Corporation (Nasdaq: TFSL). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Ivanhoe Mines Ltd. (NYSE: IVN) and Innophos Holdings, Inc (Nasdaq: IPHS). 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 STFC and TFSL 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:
State Auto Financial's (Nasdaq: STFC) third-quarter loss of 4 cents per share, reported on November 2, came in a 46 cents worse than analysts' expectations. Moreover the net income per diluted share also decreased 100% on a year-over-year basis. For 2010, the Zacks Consensus Estimate moved down 3 cents to a loss of 6 cents per share over the past month. The forecast for 2011 dropped 7 cents to $1.05 per share in the same period.
TFS Financial Corporation (Nasdaq: TFSL) posted a fourth-quarter loss of 4 cents per share on November 10 in contrast to the Zacks Consensus Estimate for a profit of a penny. The full-year average forecast is pegged at a profit of $0.01 per share, which declined from $0.11 in the last 60 days. During that time, next year's estimate slid 6 cents to $0.13 per share.
Here is a synopsis of why IVN and IPHS 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;
Ivanhoe Mines Ltd. (NYSE: IVN) third - quarter loss of 5 cents per share, announced on November 10, missed analysts' expectations by 150%. Also the net revenue decreased by nearly 45 % as compared to last year same period. The Zacks Consensus Estimate for 2010 worsened 14 cents to a loss of 24 cents per share over the 30 days as the covering analysts revised downwards. The same period has seen a decline of 13 cents in the forecast for 2011, which now stands at a loss of 13 cents per share.
Innophos Holdings, Inc (Nasdaq: IPHS) reported a third-quarter profit of 75 cents per share in the month of November while analysts anticipated a profit of 83 cents. Moreover the diluted EPS for the third quarter 2010 was a loss of $0.10. The Zacks Consensus Estimate for the current year dipped 7 cents to a profit of $2.77 per share in the last 90 days as covering analysts pulled back on expectations.
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 +27%. 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 (-0.9% versus +9%). 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.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=94
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=95
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Michael Vodicka
SOURCE Zacks Investment Research, Inc.