For Immediate Release
Chicago, IL –November 16, 2010 – 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): Fresh Del Monte Produce Inc. (FDP - Snapshot Report) and Vail Resorts, Inc. (MTN - Snapshot Report). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: International Game Technology (IGT) and Dresser-Rand Group Inc. . 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 FDP and MTN 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:
Fresh Del Monte Produce Inc. (FDP - Snapshot Report) third quarter earnings of 22 cents per share, reported on November 2, missed the average forecast by 21%. The Zacks Consensus Estimate for 2010 is pegged at $1.77 per share which decreased 20 cents over the past month. The following year’s estimate dropped 29 cents to $2.29 in that time period.
Vail Resorts, Inc. (MTN - Snapshot Report)posted a second – quarter loss of $1.16 per share on September 23, which came in 8 cents wider than the average forecast. The Zacks Consensus for the full year fell to a profit of $1.02 per share from $1.07 over the past months as 1 out of the 7 covering analysts slashed forecasts. For 2012, analysts expect a profit of $1.36 per share which would be 9 cents less than the forecasts in the same time span.
Here is a synopsis of why IGT and DRC 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;
International Game Technology (IGT)reported a fourth quarter profit of 18 cents per share on November 9, that fell 5% short of the Zacks Consensus Estimate. The full year average forecast is currently 86 cents per share, compared with last week’s projection of fro a profit of 95 cents. During that time 18 analysts out of 21 revised downward. Next year’s forecast dropped 15 cents to $1.06 per share in the same time period.
Dresser-Rand Group Inc. announced its third – quarter earnings of 46 cents per share on October 29, which missed the Zacks Consensus Estimate by a penny. Revenues dipped $133 million to $483.1 million in the present quarter. The Zacks Consensus Estimate for the present year fell 9 cents to $1.90 per share in the past 30 days as 8 out of the 12 covering analysts reduced forecasts. Next year’s forecast dropped 31 cents to $2.31 in that time 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= 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.
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Contact: Michael Vodicka