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Zacks Sell List Highlights: State Auto Financial, Alterra Capital Holdings, Dresser-Rand Group and Wabash National Corporation

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 Alterra Capital Holdings Ltd. (Nasdaq: ALTE). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Dresser-Rand Group Inc. (NYSE: DRC) and Wabash National Corporation (NYSE: WNC). 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 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 (Nasdaq: 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 3 cents 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.’ (Nasdaq: 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. (NYSE: 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 (NYSE: 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 51 cents per share over the past month. Estimate for 2011 dipped 3 cents to 39 cents per share in a span of 60 days.

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.

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