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): The Boston Beer Company, Inc. (NYSE: SAM) and Central European Distribution Corp (Nasdaq: CEDC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: United States Steel Corporation (NYSE: X) and Stepan Company (NYSE: SCL). To see the full Zacks #5 Rank List – Stocks to Sell Now visit:

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 SAM and CEDC 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:

The Boston Beer Company, Inc. (NYSE: SAM) reported first-quarter earnings of 28 cents per share on May 4, which came in nearly 38% short of analysts’ expectations. The Zacks Consensus Estimate for the current year decreased 23 cents to a profit of $2.59 over the past week as 3 analysts out of 4 revised downwards. Next year’s forecast fell 20 cents to $4.21 per share during that period.

Central European Distribution Corp‘s (Nasdaq: CEDC) first-quarter loss of 24 cents per share, announced earlier this month, lagged the Zacks Consensus Estimate by 140%. The Zacks Consensus Estimate for 2010 dropped 4 cents to a profit of $1.04 per share in the last week, which reflected reductions by 1 analyst out of 5. A month ago, the average forecast was pegged at $1.18 per share.

Here is a synopsis of why X and SCL 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;

United States Steel Corporation (NYSE: X) posted a first-quarter loss of 60 cents per share on Apr 26, which missed the Zacks Consensus Estimate by 22 cents. The full-year average dipped 1.32 to $2.80 per share from $4.12 in the last 30 days as 8 analysts out of 10 slashed estimates.

Stepan Company’s (NYSE: SCL) first-quarter profit of $1.63 per share, reported earnier this month, was 31 cents worse than analysts’ projections. The Zacks Consensus Estimate for 2011 stands at a profit of $7.04 per share, 3 cents less than last month’s forecast as one out of the 2 covering analysts pulled back on expectations. Estimate for the following year fell a penny to a profit of $7.28 per share in 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

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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About Zacks 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

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