WILLIAMS COS (WMB) - Profit Tracks

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List - Stocks to Sell Now by 80% annually (+2% versus +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 PCH and WMB 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:

Potlatch Corporation (PCH) announced third-quarter earnings of 45 cents per share on October 28 that missed analysts? expectations by almost 24%. Net earnings reduced by $27,759 million to $18,080 million. The Zacks Consensus Estimate for the current year moved down 14 cents to $1.15 per share in the last 60 days as the covering analysts slashed forecasts. Next year?s estimate slipped 21 cents to $1.28 per share in the same period.

Williams Companies, Inc. (WMB) reported a third-quarter profit of 22 cents per share on October 28 which missed the Zacks Consensus Estimate by a penny. On a year-over-year basis the EPS reduced by 12% to $ 1.10 per share. The full-year average forecast dropped a penny to $1.15 per share over the past month as one analyst out of 10 cut back on projections.

Here is a synopsis of why WIRE and CMC 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;

Encore Wire Corporation (WIRE)posted third-quarter earnings of 22cents per share on October 27 that fell 15% short the average forecast. The Zacks Consensus Estimate for 2010 decreased 8 cents to 68 cents per share in the last 60 days as the covering analysts revised downward. The following year?s estimate slid 12 cents to $1.12 per share during that time.

Commercial Metals Company (CMC) reported a fourth-quarter profit of 7 cents per share on October 29, compared with analysts? expectations for a profit of 9 cents. For 2011, the Zacks Consensus Estimate stands at a profit of 72 cents per share, 48 cents lower than the forecasts a couple of months back. During that time, next year?s estimate declined by 24 cents to $1.74 per share.
 
COMMERCIAL METL (CMC): Free Stock Analysis Report
 
POTLATCH CORP (PCH): Free Stock Analysis Report
 
ENCORE WIRE CP (WIRE): Free Stock Analysis Report
 
WILLIAMS COS (WMB): Free Stock Analysis Report
 
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