RED ROBIN GOURM (RRGB) - 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 LOPE and RRGB 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:

Grand Canyon Education Inc (LOPE) posted third-quarter earnings per share of 28 cents on November 9 that missed the average forecast by almost 3%. The Zacks Consensus Estimate for the full year declined 12 cents to a profit of $1.13 per share in the last 30 days, reflecting cuts by 10 out of 11 analysts. Forecast for 2011 moved down 28 cents to $1.39 per share during that time.

Red Robin Gourmet Burgers, Inc (RRGB) reported third -quarter earnings of 11 cents per share which was announced on November 4. The company?s adjusted earnings of 11 cents per share which missed the Zacks Consensus Estimate of 22 cents, were down 70.3% from 37 cents in the year-ago quarter. The Zacks Consensus Estimate for 2010 fell 31 cents to 63 cents per share over the past month as 5 analysts out of 6 reduced expectations.

Here is a synopsis of why FLO and MHK 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;

Flowers Foods, Inc. (FLO) announced third-quarter earnings per share of 34 cents on November 11, which came in nearly 3% short of the Zacks Consensus Estimate. Reported sales were down .8% compared to last year's third quarter.The full-year average forecast dipped by a penny to $1.54 per share in the last one month as 3 out of the 10 covering analysts lowered expectations. Next year?s estimate dropped 2 cents to $1.67 per share in the same period.

Mohawk Industries, Inc. (MHK) announced fourth-quarter earnings of 74 cents per share on November 4, which came in 3 cents below the Zacks Consensus Estimate. The average forecast for 2010 slipped 6cents to a profit of $2.43 per share over the past month as 4 out of the 12 covering analysts slashed projections.
 
FLOWERS FOODS (FLO): Free Stock Analysis Report
 
GRAND CANYON ED (LOPE): Free Stock Analysis Report
 
MOHAWK INDS INC (MHK): Free Stock Analysis Report
 
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
 
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