Business & Finance
Business and Finance
Business and Finance
Wed, October 13, 2010
Tue, October 12, 2010 
CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List a" Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Royal Bank of Canada (USA) (NYSE: [ RY ]) and Atlas Pipeline Partners, L.P. (NYSE: [ APL ])Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Medtronic, Inc. (NYSE: [ MDT ])and Given Imaging Ltd. (Nasdaq: [ GIVN ]) To see the full Zacks #5 Rank List - Stocks to Sell Now visit: [ http://at.zacks.com/?id=92 ]
"Earnings estimate revisions are the most powerful force impacting stock prices."
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 RY and APL 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:
Royal Bank of Canada (USA) (NYSE: [ RY ]) reported a third quarter profit of 80 cents per share on August 26 that missed analystsa™ expectations by nearly 22%. Apart from this the net income also declined year over year by 18.2% to $1,276 million. The Zacks Consensus Estimate for the current year decreased to $3.67 to $3.70 over the past month as the covering analysts pulled back on estimates. During that period, next yeara™s average forecast fell 6 cents to $4.28.
Atlas Pipeline Partners, L.P. (NYSE: [ APL ]) announced second quarter loss of 1 cents per share on August 2, missing the Zacks Consensus Estimate by 8 cents. The Zacks Consensus Estimate for 2010 slipped 66 cents in the past 90 days. Next yeara™s estimates fell 6 cents to 88 cents in the past 60 days.
Here is a synopsis of why MDT and GIVN 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;
Medtronic, Inc. (NYSE: [ MDT ]) posted first quarter earnings of 80 cents per share which was 2 cents below estimates. The company reported revenue of $3.773 billion compared with $3.933 billion in the year - ago period. The Zacks Consensus Estimate for the current year fell 7 cents in the last 90 days to $3.42. Next yeara™s estimate fell 16 cents to $3.66 in the same time period.
Given Imaging Ltd. (Nasdaq: [ GIVN ])posted a second quarter profit of 11 cents per share on August 11 which lagged analystsa™ projections by 21 %. The Zacks Consensus Estimate for 2010 slid 1 cent in the past 90 days to 52 cents as the covering analysts slashed expectations. Next year estimates fell 6 cents to 67 cents in the past 30 days.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; aZacks Rank Guide: Harnessing the Power of Earnings Estimate Revisionsa 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 aProfit from the Prosa 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 ]
About Zacks
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 ]
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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.
