TRANSALTA CORP (TAC) - 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 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.?s (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 analysts? 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 year?s average forecast dropped 9 cents to $1.68 per share in a span of two months.

TransAlta Corporation (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 whyB 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. (B)announced third-quarter earnings of 27 cents per share on October 29, which was a penny short of analysts? 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. (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 year?s projections also fell 8 cents to 48 cents per share in the same time period.
 
BARNES GRP (B): Free Stock Analysis Report
 
KBW INC (KBW): Free Stock Analysis Report
 
OVERSTOCK.COM (OSTK): Free Stock Analysis Report
 
TRANSALTA CORP (TAC): Free Stock Analysis Report
 
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