CHICAGO, March 8, 2011 /PRNewswire/ -- 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): Snyder S Lance Inc (Nasdaq: LNCE) and RadioShack Corporation (NYSE: RSH). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Central European Media Enterprises Ltd. (Nasdaq: CETV) and Central European Distribution Corp (Nasdaq: CEDC). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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 LNCE and RSH 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:
Snyder S Lance Inc (Nasdaq: LNCE) announced a fourth-quarter profit of 23 cents per share on Feb 18, which was 12 cents lower than the Zacks Consensus Estimate. The company posted their diluted earnings per share which ended on January 2011 fell $1.01 to $0.07 per share. For 2011, the average forecast fell 38 cents to a profit of $1.01 per share from $1.39 in the last 30 days.
RadioShack Corporation (NYSE: RSH) posted fourth-quarter earnings of 51 cents per share on Feb 22 while analysts projected a profit of 53 cents. The fourth quarter EPS fell 9 cents to 51 cents per share. The Zacks Consensus Estimate for the full year slipped 2 cents to $1.73 per share in the last 7 days as 9 analysts out of 17 reduced expectations. The following year's forecast also decreased 2 cents to a profit of $1.90 per share in that time span.
Here is a synopsis of why CETV and CEDC 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;
Central European Media Enterprises Ltd. (Nasdaq: CETV) reported a fourth -quarter loss of 41 cent per share last month, which came in 231% shy of the Zacks Consensus Estimate. The full-year average forecast dropped 26 cents to a loss of 42 cents per share over the past month as 5 out of 7 covering analysts cut back on projections. During that time, next year's estimate declined 29 cents to 24 cents per share.
Central European Distribution Corp's (Nasdaq: CEDC) fourth-quarter profit of 18 cents per share, posted on March 1, came in 99 cents worse than the average forecast. Net sales for the fourth quarter of 2010 fell $26.8 million from $255.2 million for the same period in 2009. The Zacks Consensus Estimate for the current year is pegged at a profit of $1.15 per share, 46 cents wider than the projections made 7 days back. Next year's forecast fell by a penny to a profit of $2.39 per share in a span of 60 days.
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About the Zacks Rank
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 +27%. 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 (-0.9% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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Contact: Michael Vodicka
SOURCE Zacks Investment Research, Inc.