For Immediate Release
Chicago, IL – June 1, 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): SkyWest, Inc. (SKYW) and Greenlight Capital Re, Ltd. (GLRE). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Coca-Cola Bottling Co. Consolidated (COKE) and Brookdale Senior Living, Inc. (BKD). 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 SKYW and GLRE 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:
SkyWest, Inc.’s (SKYW) first-quarter earnings of 26 cents per share, reported last month, came in 7 cents short of analysts’ expectations. For 2010, the Zacks Consensus Estimate moved down 23 cents to a profit of $1.47 per share over the past month as both the covering analysts cut back on projections. The following year’s forecast dropped 40 cents to $1.30 cents per share in the same period.
Greenlight Capital Re, Ltd. (GLRE) posted a first-quarter loss of 34 cents per share on May 3 in contrast to the Zacks Consensus Estimate for a profit of 27 cents. Earnings per share in the year-ago period stood at 77 cents per share. The full-year average forecast is pegged at a profit of $2.59 per share, which declined from $2.94 in the last 30 days. During that time, next year’s estimate slid 9 cents to $3.94 per share.
Here is a synopsis of why COKE and BKD 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;
Coca-Cola Bottling Co. Consolidated’s (COKE) first-quarter earnings of 50 cents per share, announced on May 11, fell 34% year over year. Earnings missed analysts’ expectations by 32%. The Zacks Consensus Estimate for 2010 dipped 8 cents to $3.26 per share over the past month as 1 analyst out of 2 revised downwards. The same period has seen a decline of 4 cents in the forecast for 2011, which now stands at $4.07 per share.
Brookdale Senior Living, Inc. (BKD) reported a first-quarter loss of 12 cents per share last month while analysts anticipated a loss of 10 cents. The Zacks Consensus Estimate for the current year widened 5 cents to a loss of 37 cents per share in the last 30 days as 5 analysts out of 7 pulled back on expectations. Estimate for next year is pegged at a loss of 15 cents per share, 5 cents worse than a month-ago projection.
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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