CHICAGO, April 26, 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): Neutral Tandem Inc. (Nasdaq: TNDM) and BreitBurn Energy Partners L.P. (Nasdaq: BBEP ). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks Carnival Corporation (NYSE: CCL) and TiVo Inc. (Nasdaq: TIVO). See the full Zacks #5 Rank List - Stocks to Sell Now visit
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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 TNDM and BEEP 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:
Neutral Tandem Inc. (Nasdaq: TNDM) reported fourth-quarter earnings of 24 cents per share on Mar 14, which came in 17% short of analysts' expectations. Adjusted EBITDA of $83.1 million in 2010 decreased 1.8%, compared to $84.6 million in 2009. The quarterly EPS fell 7 cents on December 2010 as compared to results of December 2009. The Zacks Consensus Estimate for 2011 fell 23 cents to 98 cents per share over the 60 days. Next year's forecast also dipped 15 cents to $2.77 per share in the last 60 days.
BreitBurn Energy Partners L.P. (Nasdaq: BBEP ) fourth-quarter loss per share of 18 cents, announced on Mar 9, lagged the Zacks Consensus Estimate by 51 cents. Total revenues fell nearly 53% to $18,165 million in December 2010 as compared to last year results. The Zacks Consensus Estimate for the current year dropped 19 to 92 cents per share in the last couple of months. Estimate for the following year also slid 8 cents per share during the same time span.
Here is a synopsis of why CCL and TIVO 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;
Carnival Corporation) (NYSE: CCL) posted a first-quarter profit of 31 cents per share on Mar 22, which missed the Zacks Consensus Estimate by 3%. The full-year average forecast fell by 4 cents per share $2.58 over the past 30 days. Estimates for 2012 fell by 4 cents in the same time span.
TiVo Inc. (Nasdaq: TIVO) announced fourth-quarter loss of 30 cents per share last month, which missed analysts' projections by 7%. Total revenues declined 19% to $55,818 million. The Zacks Consensus Estimate for 2011 moved down to 90 cents per share in the last 60 days as 1 out of the 9 covering analysts pulled back on expectations. Next year's forecast declined 36 cents to a loss of 73 cents per share in the same period of time.
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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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