CHICAGO, May 6, 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): KBW, Inc. (NYSE: KBW) and Telephone & Data Systems, Inc. (NYSE: TDS). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Sealed Air Corp. (NYSE: SEE) and Bemis Company, Inc. (NYSE: BMS). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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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 KBW and TDS 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 (NYSE: KBW) first-quarter earnings per share of 13 cents, announced on Apr 28, decreased nearly 64% on a year-over-year basis. This apart, earnings missed analysts' expectations by 44%. The Zacks Consensus Estimate for the full year declined to a profit of 27 cents per share from $1.38 over the past week as 4 out of the 5 covering analysts reduced expectations. Next year's forecast slipped 20 cents to $1.78 per share in the same time span.
Telephone & Data Systems, Inc. (NYSE: TDS) posted a first-quarter profit of 16 cents per share on May 6, which was 6 cents lower than analysts' projections. This was much behind the company's earnings of 22 cents per share in the year-ago period. The Zacks Consensus Estimate for 2011 fell 9 cents to a profit of $1.46 per share in the 60 days.
Here is a synopsis of why SEE and BMS 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;
Sealed Air Corp. (NYSE: SEE) announced second-quarter earnings per share of 34 cents on Apr 27 that lagged the Zacks Consensus Estimate by nearly 11%. The full-year average forecast moved down 8 cents to a profit of $1.73 per share in the last 30 days, reflecting cuts by 8 of the 9 covering analysts. Estimate for next year dipped 6 cents to $2.02 per share in the same period.
Bemis Company, Inc. (NYSE: BMS) reported first-quarter earnings of 47 cents per share on Apr 28, which was 10% short of the average forecast. The diluted earnings per share fell nearly 15% as compared to results of last year. The Zacks Consensus Estimate for 2011 declined 5 cents to $2.21 per share over the past week as 8 out of the 9 covering analysts revised downward. Next year's estimate slid 7 cents to 2.60 per share during 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=93
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 +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 (2.8% versus +9.7%). 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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