Chicago, IL – July 6, 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): Rofin-Sinar Technologies (NasdaqGS:RSTI - News) and Trina Solar Limited (:ADR) (NYSE:TSL - News). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: The E.W. Scripps Company (NYSE:SSP - News) and 99 Cents Only Stores (NYSE:NDN - News). 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 RSTI and TSL 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:
Rofin-Sinar Technologies’s (NasdaqGS:RSTI - News) second -quarter earnings of 43 cents per share, announced on May 5, missed analysts’ expectations by 9 cents. The Zacks Consensus Estimate for 2011 slid a penny to $2.00 per share. The following year’s forecast dropped 4 cents to $2.36 per share in the same period.
Trina Solar Limited (:ADR) (NYSE:TSL - News) reported an earnings of 63 cents per share in its first quarter on May 17, which was 45 cents wider than the Zacks Consensus Estimate. Net income was $47.7 million in the first quarter of 2011, decrease from $145.3 million in the fourth quarter of 2010. Moreover the diluted earnings per ADS reduced 2 cents to 63 cents per share on a year-over-year basis. The Zacks Consensus Estimate for 2011 dipped 15 cents to $3.31 per share in a span of a month. Next year’s forecast slid 16 cents in the same time span.
Here is a synopsis of why SSP and CTCM 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;
The E.W. Scripps Company (NYSE:SSP - News) announced first-quarter loss of 13 cents per share on May 10, which missed analysts’ projections by 160 %.The total operating revenue reduced 2.1 % as compared to 2010. The Zacks Consensus Estimate for the full year slipped 8 cents to a loss of 11 cents per share over the past 60 days.
99 Cents Only Stores (NYSE:NDN - News) posted a fourth-quarter earnings of 25 cents per share on May 25, which not only missed the average forecast by 7 % but also fell by 7% on a year-over-year basis. For the full year, the Zacks Consensus Estimate fell 4 cents to $ 1.15 per share from $ 1.19 in the last couple of months. Next year’s estimate moved down to $ 1.29 per share from $ 1.46 during that time span.
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.
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