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Zacks Sell List Highlights: J.C. Penney, LifePoint Hospitals, Globus Medical and Mead Johnson Nutrition
By: PR Newswire
Dec. 28, 2012 09:30 AM
CHICAGO, Dec. 28, 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): J.C. Penney Company, Inc. (NYSE:JCP) and LifePoint Hospitals, Inc.(NASDAQ:LPNT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Globus Medical Inc (NYSE:GMED) and Mead Johnson Nutrition CO (NYSE:MJN).
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 JCP and LPNT 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:
J.C. Penney Company, Inc. (NYSE:JCP) announced third -quarter loss of 93 cents per share on November 12 which came behind the Zacks Consensus Estimate by 85 cents. The diluted earnings per share also fell by 1,062.5% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 19 cents per share to a loss of $1.27 in the last 30 days. Next year's estimate also dipped 15 cents per share to 41 cents per share in that time span.
LifePoint Hospitals, Inc.(NASDAQ:LPNT) posted a third -quarter profit of 60 cents per share on October 26, which came in 16 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of $3.03 per share from $3.04 over the past month with none out of 8 covering analysts slashed forecasts. Next year's forecasts slipped 1 cent to $3.30 per share in the same time span.
Here is a synopsis of why GMED and MJN 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;
Globus Medical Inc (NYSE:GMED) third -quarter profit of 18 cent per share, posted on November 21, lagged analysts projections by nearly 5.26%. For 2012, the Zacks Consensus Estimate moved down 3 cents in the last 60 days as 1 out of the 7 covering analysts cut back on forecasts. The forecast for next year slid 3 cents to 81 cents per share in the same time span.
Mead Johnson Nutrition CO (NYSE:MJN) reported a third-quarter profit of 71 cents per share on October 25, that fell 1.39% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $3.04 per share, compared with the last 60 days projection of $3.05. Next year's forecast dropped 4 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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