CHICAGO, March 16, 2011 /PRNewswire/ -- 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): Atlantic Tele-Network, Inc. (Nasdaq: ATNI) and Otter Tail Corporation (Nasdaq: OTTR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) and Central European Distribution Corp (Nasdaq: CEDC). 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 ATNI and OTTR 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:
Atlantic Tele-Network, Inc. (Nasdaq: ATNI) posted a fourth-quarter earnings of 12 cents per share on while analysts projected a profit of 36 cents. The Zacks Consensus Estimate for the current year is pegged at a profit of $1.20 per share, a decline of $1.29 in the last 30 days. The past month has seen downward revision by 2 analysts out of 5, bringing the average forecast for 2012 down $2.25 to $2.66 per share.
Otter Tail Corporation (Nasdaq: OTTR) announced a fourth-quarter profit of 23 cents per share on Feb 7, which missed analysts expectations by 36%. Moreover the diluted earnings per share also fell by nearly 92%. The Zacks Consensus Estimate for the full year decreased 6 cents to $1.14 per share over the past couple of months. Next year's estimate fell 3 cents to $1.48.
Here is a synopsis of why SCHN and CEDC 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;
Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) reported first-quarter earnings per share of 64 cents on Jan 6, which came in 7 cents shy of the Zacks Consensus Estimate. The first quarter revenue dipped by 7%. The full-year average forecast dipped 2 cents to $4.08 per share in the last 60 days as the covering analysts lowered expectations. Next year's estimate dropped 7 cents to $5.18 per share in the same time span.
Central European Distribution Corp's (Nasdaq: CEDC) fourth-quarter profit of 18 cents per share, posted on March 1, came in 99 cents worse than the average forecast. Net sales for the fourth quarter of 2010 fell $26.8 million from $255.2 million for the same period in 2009. The Zacks Consensus Estimate for the current year is pegged at a profit of $1.15 per share, 46 cents wider than the projections made 7 days back. Next year's forecast fell by a penny to a profit of $2.39 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.
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