For Immediate Release
Chicago, IL – May 11, 2010 – 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): CDC Software Corp. (CDCS) and First Financial Bancorp (FFBC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Molson Coors Brewing Co. (TAP) and Quest Diagnostics Inc. (DGX). 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 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 CDCS and FFBC 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:
CDC Software Corp. (CDCS) reported first-quarter earnings of 26 cents per share on Apr 28, which came in 4 cents behind analysts’ expectations. The Zacks Consensus Estimate for the current year decreased 33 cents to a profit of $1.15 over the past month as 1 analyst out of 2 cut back on projections. During that period, next year’s average forecast fell 32 cents to $1.33 per share.
First Financial Bancorp (FFBC) announced first-quarter earnings per share of 17 cents on Apr 29, missing the Zacks Consensus Estimate by 39%. The Zacks Consensus Estimate for 2010 slipped 8 cents to a profit of $1.01 per share in the last week, which reflected reductions by 2 analysts out of 7. Next year’s estimate fell 8 cents to $1.25 per share in the same period.
Here is a synopsis of why TAP and DGX 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;
Molson Coors Brewing Co. (TAP) saw a 30% year-over-year decline in first-quarter earnings thanks to a slow recovery in consumer confidence. On May 4, Molson Coors reported quarterly earnings of 37 cents per share, which lagged the Zacks Consensus Estimate by nearly 18%. The full-year average forecast dipped 5 cents to a profit of $3.39 per share in the past week as 7 analysts out of 11 slashed estimates.
Quest Diagnostics Inc.’s (DGX) first-quarter earnings of 89 cents per share, reported last month, missed analysts’ projections by 9%. The Zacks Consensus Estimate for 2010 slid 3 cents to $4.18 per share in the last 30 days as 13 analysts out of 18 revised downward. The average forecast for the following year declined 4 cents to $4.59 per share in 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 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 +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.
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
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Contact: Michael Vodicka
Company: Zacks.com
Phone: 312-265-9226
Email: pr@zacks.com
Visit: www.zacks.com
