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): Knight Transportation (NYSE: KNX) and The Advisory Board Company (Nasdaq: ALEX). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Landauer, Inc. (Nasdaq: LDR) and Harbin Electric, Inc. (Nasdaq: KRBN). 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 KNX and ALEX 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:
Knight Transportation (NYSE: KNX) announced first -quarter earnings of 12 cents per share on April 20 that missed analysts’ expectations by 29%. This apart the earnings missed the previous year’s earnings results by 3 cents. The Zacks Consensus Estimate for the current year slipped 7 cents to 82 cents per share in the last 30 days as 21 out of the 25 covering analysts reduced estimates. Next year’s estimate dipped 6 cents to $1.02 per share in that time span.
The Advisory Board Company (Nasdaq: ALEX) posted a first-quarter profit of 20 cents per share yesterday, which came in 24 cents wider than the average forecast. The diluted earnings per share fell 7 cents to a profit of 3 cents on March 2011 as compared to results of March 2010. The Zacks Consensus Estimate for the full year fell 22 cents to a profit of $1.76 per share from $1.98 over the past couple of months. For 2012, analysts expect a profit of $2.41 per share, compared to projections of a profit of $2.46 per share in a span of 60 days.
Here is a synopsis of why LDR and HRBN 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;
Landauer, Inc.‘s (Nasdaq: LDR) second-quarter profit of 63 cents per share, posted on May 3, lagged analysts’ projections by nearly 6%. For 2011, the Zacks Consensus Estimate moved down a penny to a profit of $2.69 per share in the last 7 days as 1analyst out of 3 cut back on forecasts. Estimate for next year slid 6 cents to a profit of $2.96 per share during that time period.
Harbin Electric, Inc. (Nasdaq: KRBN) reported a fourth-quarter profit of 50 cents per share on March 16 that fell 17% short of the Zacks Consensus Estimate. The full-year average forecast is currently $3.02 per share, compared to projections of $3.04 made 60 days back. Next year’s forecast dropped 1 cent to $3.52 per share in 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.
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=94
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT 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=95
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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.
Zacks Investment Research
800-767-3771 ext. 9339
Web Site: http://www.zacks.com
Tagged with: Advisory Board Company • Business • Common stock • Companies • DJIA • Dow Jones • Equity Investing • Industry • Investing • Investment Research • Knight Transportation • Markets • Mutual Funds • NASDAQ • New York Stock Exchange • NYSE • OTC • Preferred stock • Profit (accounting) • Sell List • Stock market • Stock Picks • Wall Street • Zacks
Filed under: Business
Like this post? Subscribe to my RSS feed and get loads more!