INERGY LP (NRGY) - 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 AIG and NRGY 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:

American International Group, Inc. (AIG) posted a third-quarter loss of $1.47 per share on November 5, missing the average forecast by nearly 209%. The Zacks Consensus Estimate for the year 2010 is pegged at a profit of $2.44 per share that dropped $4.66 in the last 90 days as the covering analysts lowered expectations. Estimate for 2011 fell $6.36 to a profit of 78 cents per share in the same time span.

Inergy, L.P.?s (NRGY) fourth-quarter loss of 97 cents per share, announced on November 29, trailed the Zacks Consensus Estimate by 35 cents. The last month has seen downward revision by one analyst out of 9. The full-year average forecast fell 39 cents to 82 cents per share in a span of 60 days. Estimates for 2012 fell by a penny to $1.23 in a span of a month.

Here is a synopsis of why LL and KAR 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;

Lumber Liquidators Holdings, Inc. (LL) reported a third-quarter earnings of 15 cents per share on November 9, which was 17 cents wider than the Zacks Consensus Estimate. The average forecast for 2010 fell a penny to a profit of 97 cents per share from 96 cents over the past couple of months as the covering analysts slashed projections.

KAR Auction Services Inc (KAR) announced a third-quarter profit of 19 cents per share on November 3, The Zacks Consensus Estimate for 2010 is pegged at profit of 88 cents per share, which is 6 cents lower than forecasts made 90 days ago which was at a profit of 94 cents. Estimates for 2011 declined to a profit of 96 cents per share from 98 cents during that time.
 
AMER INTL GRP (AIG): Free Stock Analysis Report
 
KAR AUCTION SVC (KAR): Free Stock Analysis Report
 
LUMBER LIQUIDAT (LL): Free Stock Analysis Report
 
INERGY LP (NRGY): Free Stock Analysis Report
 
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