For Immediate Release
Chicago, IL – August 31, 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): Systemax Inc. (SYX) and Forestar Group Inc. (FOR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: The Buckle, Inc. (BKE) and J&J Snack Foods Corp. (JJSF). 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 SYX and FOR 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:
Systemax Inc. (SYX) posted a second-quarter profit of 25 cents per share on Aug 10, missing the average forecast by 28%. The Zacks Consensus Estimate for the current year is pegged at a profit of $1.50 per share that dropped 17 cents in the last 30 days as 2 out of 4 covering analysts lowered expectations. The following year’s estimate fell 16 cents to a profit of $1.77 per share in the same time period
Forestar Group Inc.’s (FOR) second-quarter loss of 9 cents per share, announced on Aug 3,compared to the Zacks Consensus Estimate for a profit of 1 cent per share. Revenue declined to $28.1 million from $40.5 million in the year – ago quarter. The last month has seen downward revision by the only covering analyst bringing the full-year average forecast to a loss of 15 cents per share.
Here is a synopsis of why BKE and JJSF 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 Buckle, Inc. (BKE) posted a second-quarter profit of 44 cents per share on August 19, missing the average forecast by 12%. The Zacks Consensus Estimate for the current year is pegged at a profit of $2.65 per share that dropped 17 cents in the last 30 days as 7 of 11 covering analysts lowered expectations. The following year’s estimate also fell 17 cents over the past 30 days to a profit of $2.62 per share.
J&J Snack Foods Corp.’s (JJSF) third-quarter earnings of 85 cents per share, announced on July 23, trailed the Zacks Consensus Estimate by 3 cents. The last month has seen downward revision by one analyst out of 3, bringing the full-year average forecast down 4 cents to $2.55 per share. The average forecast for the next year also fell 4 cents to $2.74 per share in the same time period.
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 +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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BUCKLE INC (BKE): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
SYSTEMAX INC (SYX): Free Stock Analysis Report
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