For Immediate Release
Chicago, IL –November 2, 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): Skechers USA, Inc. (SKX) and Kimberly-Clark Corporation (KMB). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Service Corporation International (SCI) and Bally Technologies Inc. (BYI). 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 SKX and KMB 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:
Skechers USA, Inc. (SKX) announced third quarter earnings of 74 cents per share on October 27, which missed analysts' projections by 26 %. The Zacks Consensus Estimate for the full year slipped 44 cents to a profit of $3.03per share over the past week, reflecting downward revisions by 5 out of the 6 covering analysts.
Kimberly-Clark Corporation (KMB) posted a third-quarter earnings of $1.14 per share last month against analysts projections of $1.28 per share. The Zacks Consensus Estimate for 2010 slid 18 cents per share to $4.62 per share in the last 7days as 13 analysts out of 14 reduced expectations. During that time, next year's forecast slipped 22 cents to a profit of $5.01 per share.
Here is a synopsis of why SCI and BYI 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;
Service Corporation International (SCI) reported third -quarter earnings of 13 cents per share, on October 27 which was a penny lower than the estimates. The full-year average forecast moved down 3 cents at a profit of 54 cents per share in the last 7 days, reflecting cuts by 3 out of 4 analysts.
Bally Technologies Inc. (BYI) reported fourth -quarter earnings of 40 cents per share on Aug 12, which was a 6 cents less than the average forecast. The Zacks Consensus Estimate for the current year fell 8 cents to a profit of $2.16 per share in the last week as 15 analysts out of 16 revised downward. Next year's estimate dipped by 5 cents to $2.64 per share in the same period.
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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BALLY TECH INC (BYI): Free Stock Analysis Report
KIMBERLY CLARK (KMB): Free Stock Analysis Report
SERVICE CORP IN (SCI): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
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