Three Stocks Downgraded to Zacks Rank #5 (Strong Sell)

Three stocks have been added to the Zacks Rank #5 (Strong Sell) List: eXp World Holdings, Edgewell Personal Care, and Black Stone Minerals. The Zacks Consensus Estimate for their current year earnings has been revised downward by 45.5%, 9.2%, and 8%, respectively, over the last 60 days.

Three prominent stocks have recently been added to the Zacks Rank #5 (Strong Sell) list. These additions reflect significant downward revisions in the Zacks Consensus Estimate for their current year earnings. The stocks in question are eXp World Holdings, Edgewell Personal Care, and Black Stone Minerals.

eXp World Holdings (EXPI)

eXp World Holdings, a real estate brokerage known for its cloud-based, agent-centric business model, reported its Q2 2025 earnings on July 31, 2025. The company missed analyst expectations, with EPS (GAAP) coming in at $(0.01) versus an estimated $0.095. Revenue (GAAP) edged up 1% year over year to $1.31 billion, just ahead of the $1.30 billion GAAP revenue estimate. However, adjusted operating costs rose 20%, driving adjusted EBITDA (non-GAAP) down 65.9% to $11.2 million compared to Q2 2024. These financial results underscore the company's challenges in balancing growth and profitability. The Zacks Consensus Estimate for its current year earnings has been revised downward by 45.5% over the last 60 days [2].

Edgewell Personal Care (EPC)

Edgewell Personal Care, a diversified consumer products company, has seen its Zacks Consensus Estimate for current year earnings revised downward by 9.2% over the last 60 days. While the company has not released its Q2 2025 earnings, the downward revision reflects concerns about its ability to maintain profitability in a competitive market. Edgewell Personal Care operates in the personal care, home care, and beauty segments, which face increasing pressure from both consumer preferences and market dynamics [1].

Black Stone Minerals (BSM)

Black Stone Minerals, a company involved in the exploration and production of natural resources, has seen its Zacks Consensus Estimate for current year earnings revised downward by 8% over the last 60 days. The downward revision is likely due to the volatile nature of commodity prices and the challenges associated with exploration and production activities. Black Stone Minerals operates in the oil and gas sector, which is particularly sensitive to macroeconomic conditions and geopolitical risks [1].

Conclusion

The addition of these three stocks to the Zacks Rank #5 (Strong Sell) list highlights the significant downward revisions in earnings estimates over the last 60 days. Investors should closely monitor these companies' financial performance and the broader market conditions that may influence their earnings prospects. The downward revisions underscore the need for a cautious investment approach, particularly in the face of economic uncertainty and competitive pressures.

References

[1] https://www.ainvest.com/news/zimmer-biomet-q2-2025-earnings-outlook-strategic-growth-catalysts-navigating-4-zacks-rank-innovation-market-gains-2508/
[2] https://www.nasdaq.com/articles/exp-world-expi-q2-profit-falls-113