CHICAGO, April 19, 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): KBW, Inc. (NYSE: KBW) and Strategic Hotels & Resorts Inc. (NYSE: BEE). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: WD-40 Company (Nasdaq: WDFC) andCompanhia Siderurgica Nacional (ADR) (NYSE: SID). See the full Zacks #5 Rank List - Stocks to Sell Now visit
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 KBW and BEE 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:
KBW, Inc.'s(NYSE: KBW) fourth-quarter earnings of 10 cents per share, announced on Feb 17, which was 13 cents wider than the Zacks Consensus Estimate. One analyst out of 5 lowered estimates in the last 60 days, sending the full-year average forecast down 2 cents to a profit of $1.38 per share.
Strategic Hotels & Resorts Inc.'s (NYSE: BEE) fourth-quarter loss per share of a penny, announced on Feb 23, lagged the Zacks Consensus Estimate by 4 cents. The Zacks Consensus Estimate for the current year dropped a penny to 5 cents per share in the last month. Estimate for the following year also slid a penny to 34 cents per share during the same time span.
Here is a synopsis of why WDFC and SID 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;
WD-40 Company (Nasdaq: WDFC) announced second-quarter earnings of 53 cents per share on April 6, which missed analysts' projections by nearly 21%. The diluted earnings per share fell 11 cents to $0.53 from last years EPS. The Zacks Consensus Estimate for the full year slipped a penny to a profit of $2.27 per share over the past month, reflecting downward revisions by all the 5 covering analysts.
Companhia Siderurgica Nacional (ADR) (NYSE: SID) posted a fourth-quarter profit of 18 cents per share on Mar 28, which was 12cents worse than the average forecast. For the full year, the Zacks Consensus Estimate fell 3 cents to a profit of $1.66 per share from $1.69 in the last couple of months Next year's estimate moved down to a profit of $2.10 per share from $2.27 during that time span.
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.
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.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.