ALTERRA CAP HLD (ALTE) - Profit Tracks

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List - Stocks to Sell Now by 80% annually (+2% versus +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 ALTE 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 (STFC) announced third-quarter loss of 4 cents per share on November 2 that lagged analysts? expectations by nearly 110%. Moreover the diluted net income also fell by 100% to $0.00 on a year over year basis. For 2010, the Zacks Consensus Estimate stands at a loss of 6 cents per share that dropped 3cents over the past week as 1 out of the 5 covering analyst slashed projections. Next year?s estimate moved down 7 cents to $1.05 per share in the same period.

Alterra Capital Holdings Ltd.? (ALTE) third-quarter earnings of 64 cents per share, reported on November 2, not only missed analysts? projections by nearly 10% but also decreased 57% on a year-over-year basis. The Zacks Consensus Estimate for the full year slipped a penny to $2.61 per share in the last 7 days as 2 out of the 10 covering analysts cut forecasts. The following year?s estimate fell 26 cents to $2.50 during a span of 60 days.

Here is a synopsis of why DRC and WNC 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;

Dresser-Rand Group Inc. (DRC)reported a third-quarter profit of 46 cents per share on October 29, compared with analysts? expectations for a profit of 47 cents. Quarterly revenues slumped to $483.1 million from prior year?s $612.1 Million. The Zacks Consensus Estimate for the current year decreased 13 cents to a profit of $1.86 per share in the last couple of month as the covering analysts revised downward.

Wabash National Corporation (WNC) posted third-quarter loss of 3 cents per share in the month of November, which came in 50% short of the average forecast. The Zacks Consensus Estimate for 2010 declined 2 cents to a loss of 51cents per share over the past month. Estimate for 2011 dipped 3 cents to 39 cents per share in a span of 60 days.
 
ALTERRA CAP HLD (ALTE): Free Stock Analysis Report
 
DRESSER-RAND GP (DRC): Free Stock Analysis Report
 
STATE AUTO FINL (STFC): Free Stock Analysis Report
 
WABASH NATIONAL (WNC): Free Stock Analysis Report
 
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