Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List – Stocks to Sell Now by 80% annually (+2% versus +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 TDS 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 (KBW) first-quarter earnings per share of 13 cents, announced on Apr 28, decreased nearly 64% on a year-over-year basis. This apart, earnings missed analysts? expectations by 44%. The Zacks Consensus Estimate for the full year declined to a profit of 27 cents per share from $1.38 over the past week as 4 out of the 5 covering analysts reduced expectations. Next year?s forecast slipped 20 cents to $1.78 per share in the same time span.
Telephone & Data Systems, Inc. (TDS) posted a first-quarter profit of 16 cents per share on May 6, which was 6 cents lower than analysts? projections. This was much behind the company?s earnings of 22 cents per share in the year-ago period. The Zacks Consensus Estimate for 2011 fell 9 cents to a profit of $1.46 per share in the 60 days.
Here is a synopsis of why SEE and BMS 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;
Sealed Air Corp. (SEE) announced second-quarter earnings per share of 34 cents on Apr 27 that lagged the Zacks Consensus Estimate by nearly 11%. The full-year average forecast moved down 8 cents to a profit of $1.73 per share in the last 30 days, reflecting cuts by 8 of the 9 covering analysts. Estimate for next year dipped 6 cents to $2.02 per share in the same period.
Bemis Company, Inc. (BMS) reported first-quarter earnings of 47 cents per share on Apr 28, which was 10% short of the average forecast. The diluted earnings per share fell nearly 15% as compared to results of last year. The Zacks Consensus Estimate for 2011 declined 5 cents to $2.21 per share over the past week as 8 out of the 9 covering analysts revised downward. Next year?s estimate slid 7 cents to 2.60 per share during the same period.
BEMIS (BMS): Free Stock Analysis Report
KBW INC (KBW): Free Stock Analysis Report
SEALED AIR CORP (SEE): Free Stock Analysis Report
TELEPHONE &DATA (TDS): Free Stock Analysis Report
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