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Zacks Sell List Highlights: American International, Inergy, L.P., Lumber Liquidators Holdings and KAR Auction Services

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January 18, 2011 | Comment(s): 0
Recommended this article (6)
AIG | NRGY | LL | KAR

For Immediate Release

Chicago, IL –January 18, 2011 – 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): American International Group, Inc. (AIG - Analyst Report) and Inergy, L.P. (NRGY - Snapshot Report). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Lumber Liquidators Holdings, Inc. (LL - Snapshot Report) and KAR Auction Services Inc (KAR - Snapshot Report). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=5522

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 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 - Analyst Report) 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 - Snapshot Report) 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 - Snapshot Report) 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 - Snapshot Report) 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.

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=5523

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% versus +10%). 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.

Zacks “Profit from the Pros” e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5526

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5527

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Michael Vodicka
Company: Zacks.com
Phone: 312-265-9226
Email: pr@zacks.com
Visit: www.zacks.com

 

Read the full analyst report on AIG

Read the full analyst report on NRGY

Read the full analyst report on LL

Read the full analyst report on KAR

 

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