For Immediate Release
Chicago, IL – May 25, 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): Dole Food Company, Inc. (DOLE) and Speedway Motorsports (TRK). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: The E.W. Scripps Co. (SSP) and Comfort Systems USA, Inc. (FIX). To see the full Zacks #5 Rank List – Stocks to Sell Now visit: http://at.zacks.com/?id=5522
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 DOLE and TRK 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:
Dole Food Company, Inc. (DOLE) posted first-quarter earnings per share of 25 cents on May 9 that missed the average forecast by nearly 22%. The Zacks Consensus Estimate for the full year declined 22 cents to a profit of $1.28 per share in the last 30 days, reflecting cuts by 7 out of 8 analysts. Forecast for 2011 moved down 8 cents to $1.71 per share during that time.
Speedway Motorsports’ (TRK) first-quarter earnings of 24 cents per share, announced earlier this month, marked a 52% year-over-year drop. Analysts expected earnings of 33 cents per share. Revenues decreased to $118.5 million from last year’s $133.6 million. The Zacks Consensus Estimate for 2010 fell 9 cents to $1.14 per share over the past month as one analyst out of 3 reduced expectations.
Here is a synopsis of why SSP and FIX 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;
The E.W. Scripps Co. (SSP) reported first-quarter earnings per share of 2 cents on May 10, which came in 71% short of the Zacks Consensus Estimate. The full-year average forecast dipped 6 cents to 46 cents per share in the last month as one analyst out of 2 lowered expectations. Next year’s estimate dropped 5 cents to 17 cents per share in the same period.
Comfort Systems USA, Inc. (FIX) announced first-quarter earnings of 3 cents per share on May 4, reflecting an 83% decline on a year-over-year basis. Earnings lagged the Zacks Consensus Estimate by almost 77%. Revenues slumped 16% to $236.5 million. The average forecast for 2010 slipped 31 cents to a profit of 36 cents per share over the past month as all of the 6 covering analysts slashed projections.
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=5523
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 +28%. 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 (+2% versus +10%). 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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