Business & Finance
Business and Finance
Business and Finance
Wed, December 22, 2010
Tue, December 21, 2010 
CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List a" Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): KBW, Inc. (NYSE: [ KBW ]) and TransAlta Corporation (NYSE: [ TAC ]) Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Barnes Group Inc. (NYSE: [ B ]) and Overstock.com, Inc. (Nasdaq: [ OSTK ]). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: [ http://at.zacks.com/?id=92 ]
"Earnings estimate revisions are the most powerful force impacting stock prices."
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 KBW and TAC 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.a™s (NYSE: [ KBW ]) third-quarter earnings of 15 cents per share, reported in the month of October declined 59% to $1.15 per diluted share on a year over year basis. This apart, earnings missed analystsa™ expectations by nearly 29%. For 2010, the Zacks Consensus Estimate moved down 8 cents to a profit of 99 cents per share over the past month. The following yeara™s average forecast dropped 9 cents to $1.68 per share in a span of two months.
TransAlta Corporation (NYSE: [ TAC ]) posted a third-quarter profit of 17 cents per share on October 29, compared to the Zacks Consensus Estimate for a profit of 28 cents. The full-year average forecast dipped 14 cents to a profit of 94 cents per share over the past two months. Net and comparable earnings of TransAlta Corporation fell $0.17 to $0.17 per share or $38 million. The average forecast for 2011 fell 11 cents in a span of 60 days.
Here is a synopsis of why B and OSTK 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;
Barnes Group Inc. (NYSE: [ B ]) announced third-quarter earnings of 27 cents per share on October 29, which was a penny short of analystsa™ expectations. The Zacks Consensus Estimate for 2010 dipped 5 cents to 99 cents per share in the last couple of months as the covering analysts reduced forecasts. Estimate for next year now stands at $1.35 per share, which moved down 3 cents in 30 days.
Overstock.com, Inc. (Nasdaq: [ OSTK ]) reported its third-quarter results with a loss of 15 cents per share in October while analysts anticipated a loss of a penny. The Zacks Consensus Estimate for the full year declined 8 cents to 40 cents per share over the one month, reflecting cuts by the covering analysts. Next yeara™s projections also fell 8 cents to 48 cents per share in the same time period.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; aZacks Rank Guide: Harnessing the Power of Earnings Estimate Revisionsa 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 aProfit from the Prosa 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 ]
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