Zacks Reveals Three Stocks with Strong Sell Ratings

Zacks lists three stocks facing significant downward earnings revisions. Investors should be cautious as Century Communities (CCS), Armata Pharmaceuticals (ARMP), and Cable One (CABO) face earnings downgrades impacting their stock valuations.

Date: 28-04-2025

AI Rating: 3

In the latest report, three companies have been flagged as Zacks Rank #5 (Strong Sell), which could indicate potential declines in their stock prices. This classification suggests that these firms are expected to underperform the market significantly, mostly due to downward revisions in earnings estimates.

Earnings Per Share (EPS): The Zacks Consensus Estimate for earnings has been revised down for all three companies. Century Communities (CCS) has seen a 20.5% downward revision, while Armata Pharmaceuticals (ARMP) is down almost 14.1%, and Cable One (CABO) is down 8.5%. Such significant downward revisions often result in reduced confidence among investors, leading to potential stock price declines.

Implications for Stock Prices: For Century Communities, the robust downturn in earnings projections signals challenges within the homebuilding sector, which may be compounded by rising interest rates and sustained inflation. Similarly, Armata Pharmaceuticals is facing a rough terrain in the biotech sector that could complicate their prospects for profitability. Cable One also grapples with a competitive cable and internet services market, reflecting their reduced growth expectations in the upcoming quarters.

Investors typically react to Zacks Rank #5 designations by reassessing their positions in affected stocks, often resulting in selling pressure that drives stock prices further down. Therefore, these risks can translate into volatility, particularly given that any substantial earning miss in upcoming reports can exacerbate current downward trends in stock prices.

Stocks: CCS ARMP CABO