Stocks to Sell Now

Making money in the stock market isn't just about finding winning stocks, it is also about avoiding stocks that are likely to disappoint. This is why Zacks provides investors with the Zacks #5 Rank List – stocks to sell now. Since 1988, stocks on the Zacks #5 Rank List have underperformed the S&P 500 by over 100% (2.96% versus 10.97%).

Why the Zacks Rank Works

In 1979, Len Zacks published a research study that proved:
Earnings Estimates Are the Most Powerful Force Driving Stock Prices

From this groundbreaking study, the Zacks Rank was born. This proprietary quantitative model ranks stocks based on four factors:

• Brokerage analyst agreement
• Magnitude of estimate revisions
• Upside of recent revisions versus the consensus estimate
• The latest earnings surprise

Rather than just applying a raw score, the model compares how a stock measures up against all other stocks within the Zacks Rank universe. At all times, the Zacks Rank is proportionately applied to approximately 4,400 stocks for which brokerage analyst estimates are available. In other words, regardless of how strong the economy is, only the very top 5% of stocks receive the coveted designation of Zacks #1 Rank. More importantly, at all times, the same number of stocks are assigned a Zacks #5 Rank.

This equality between "Strong Buy" and "Strong Sell" recommendations makes the Zacks Rank a much more reliable indicator than brokerage recommendations. Brokerage recommendations are biased towards buy ratings, with many brokerage analysts reluctant to issue a "sell" recommendation.

Stocks to Sell Now
The Zacks #5 Rank List can only be found on Zacks.com. Every day, we highlight a #5 stock and explain in detail why it's likely to underperform the market. Zacks Premium members have access to the entire list of approximately 220 Zacks #5 Rank stocks, which is updated daily. Long time Zacks customers know to check this list every day to insure that they don't own any of these stocks. If they do, then it's one of the earliest possible signs to sell before more serious damage hits their stock and their wallet.

Want us to email you when your stocks become a #5 rank? Zacks Premium members can follow their stocks and Zacks Rank changes through our Portfolio Tracker.

Conducting research with this list is as simple as clicking a mouse button. Each ticker symbol is linked to a new quote page that quickly gives you important information such as estimated earnings, valuation and dividend yield. Plus, this quote page includes links to allow you to quickly access financial statements, interactive java charts and more.

Changes in the consensus earnings estimates for the current fiscal year and the next fiscal year are provided. Cuts in analysts' forecasts is a clear sign that you should stay away from the stock.

The very right-hand column shows how a company's earnings have compared against expectations over the past four quarters. Companies that have missed earnings expectations before are more likely to miss expectations again.

The entire Zacks #5 Rank list can be sorted by any of the columns, including ticker, estimate revisions, and earnings surprise history, which makes finding profitable stocks easy.

Where to Find the Zacks #5 Rank List

1. Go to the Zacks Home Page
2. From "Top Zacks Features" on the left, select Zacks Rank
3. From the Zacks Rank Home Page, click Zacks #5 Rank Highlight
4. For the whole list (Premium only) click Zacks #5 Rank List

Click Here for the Zacks #5 Rank Highlight
Click Here for the Zacks Rank Home Page
Zacks Portfolio Tracker
Click Here for the Zacks #5 Rank List