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): Sears Holding Corp. (NASDAQ: SHLD) and Parker
Drilling (NYSE: PKD). Further, Zacks announced #4 Rankings (Sell) on
two other widely held stocks: Domino’s
Pizza Corp. (NYSE: DPZ) and Schering Plough (NYSE: SGP). 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 — Stocks to Sell Now by 129% annually
(+5.3% vs. +12.1%). 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 SHLD and PKD 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:
Sears Holding Corp. (NASDAQ: SHLD) shares are trading only
marginally lower on the year in spite of the fact that the company is
operating in the incredibly challenging discretionary retail
environment. But that is not to say that the outlook is all peaches and
cream, because within the last 30 days, analyst estimates have been
dropping sharply. The current-year estimate was $6.31 only 90 days ago,
and now stands at a much diminished $3.58 per share. The consumer
environment remains tepid, with no end in sight.
Parker Drilling (NYSE: PKD) is operating in the insanely
lucrative energy sector, but this oil driller had been unable to
capitalize on the big boom in crude prices, as evidenced by the movement
in its stock price over the first few months of the year. Shares of
Parker have dropped over 30% of their value as they have dipped lower
from over $7.50 to less than $5.00. Estimates continue to move lower,
with the current-year estimate dropping by 30% in the last 30 days,
sliding from $1.03 to just 73 cents per share.
Here is a synopsis of why DPZ and SGP 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;
Domino’s Pizza Corp. (NYSE: DPZ) makes
delicious pizza, but apparently that momentum has not carried over to
the income statement, because the company’s
stock price has been down-trending for close to the last year on the
heels of some very disappointing quarterly results. Domino’s
has failed to meet analyst expectations three out of the last four
quarters, having missed by a whopping 26% only two quarters ago. As you
can imagine, analysts continue to downgrade their forecast, with the
current-year estimate dropping 13 cents in the last 30 days and moving
to its current projection of $103 per share.
Schering-Plough Corp. (NYSE: SGP) shares have been severely
battered in 2008, heading lower from over $26 to their current location
of under $20, a sharp loss of close to 25%. This large pharmaceutical
producer has had its estimates slashed in the last 60 days as a result
of the ever-increasing general weakness in the domestic economy. The
current-year estimate has dropped 10 cents, landing at its current
projection of $1.50 per share.
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 +32.2%.
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
underperformed the S&P 500 by 129% annually (+5.3% vs. +12.1%). 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.
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 by visiting http://at.zacks.com/?id=94
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was
formed in 1978 by Leonard Zacks. As a PhD in mathematics 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 at http://at.zacks.com/?id=95
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.
|