3M, ASGN, and Amplify Energy Corp Join the Zacks Rank #5 List on May 3

On May 3, 2023, investors observed notable movements in the stock market as three companies were designated with the Zacks Rank #5, which signifies a 'Strong Sell' recommendation. This list is a dynamic part of the Zacks stock-rating system, a quantitative model built to guide or suggest performance based on specific criteria. The companies that have been integrated into this 'Strong Sell' category are 3M (MMM), ASGN Incorporated (ASGN), and Amplify Energy Corp (AMPY).

Understanding the Zacks Rank System

The Zacks Rank is a proprietary method aimed at predicting stock movement. Since its launch in 1988, the Zacks Rank model has seen its stock picks more than double the S&P 500's average annual gain, demonstrating the potential utility of this system in the average investor's strategy. The system uses a combination of factors, including earnings estimate revisions and the company's financial performance, to determine the ranking of stocks from a #1 (Strong Buy) to #5 (Strong Sell).

What It Means for Investors

Investors who pay attention to the Zacks Rank may find the inclusion of MMM, ASGN, and AMPY on the #5 list particularly insightful. A 'Strong Sell' rating does not necessarily indicate that a company is performing poorly in all aspects but signals potential headwinds or underperformance relative to peers. The inclusion of these companies on the List could prompt a strategic reassessment for shareholders and potential investors considering these stocks.

The Zacks Rank system results are computed monthly and are based on the starting and ending prices of Zacks Rank stocks, as well as any dividends received during the month. While the rankings can change frequently within a month, they serve as a point of reference for investors looking to make informed decisions influenced by the latest data and analysis.

MMM, ASGN, AMPY