CHICAGO, Feb. 23, 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): Energizer Holdings, Inc. (NYSE: ENR) and Expedia, Inc. (Nasdaq: EXPE) Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Bally Technologies Inc. (NYSE: BYI) and Live Nation Entertainment, Inc. (NYSE: LYV). 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 ENR and EXPE 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:
Energizer Holdings, Inc. (NYSE: ENR) posted first-quarter earnings of $1.68 per share on Feb 1, compared to the Zacks Consensus Estimate of $1.92. Net earnings for the year 2011 fell $15.3 million to $110.4million. The diluted earning per share also fell 11% on a year-over-year basis. The full-year average forecast slipped 88 cents to a profit of $5.29 per share over the month as all the 13 covering analysts cut back on expectations. Next year's estimate slid 77 cents to $6.24 per share in that time period.
Expedia, Inc.'s (Nasdaq: EXPE) fourth-quarter earnings of 29 cents per share, reported earlier this month, missed analysts' expectations by 12%. For 2011, the Zacks Consensus Estimate moved down 17 cents to $1.66 per share in the last 30 days, reflecting reductions by all the 10 covering analysts. During that time, the following year's average forecast dropped 21 cents to $1.91 per share.
Here is a synopsis of why BYI and LYV 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;
Bally Technologies Inc. (NYSE: BYI) announced second-quarter earnings of 44 cents per share on Feb 2, which came in nearly 4% short of analysts' expectations. Revenues decreased to $182.7 million from $205.0 million. Diluted earnings per share fell by nearly 6% on a year-over-year-basis. The Zacks Consensus Estimate for 2011 dipped 12 cents to $2.03 per share in the last 30 days as all the 16 covering analysts reduced forecasts. Estimate for 2012 is $2.59 per share, which fell 8 cents in the same period.
Live Nation Entertainment, Inc. (NYSE: LYV) reported fourth-quarter earnings of 33 cents per share on February 28 while analysts anticipated a profit of 36 cents. The Zacks Consensus Estimate for the full year declined 4 cents to a loss of 72 cents per share in the last month as 2 analysts out of 6 slashed projections.
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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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