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) and Companhia 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.
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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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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