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CHICAGO--(BUSINESS
WIRE)--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):
The Steak N Shake Co. (NYSE: SNS) and Hooker Furniture (NASDAQ:
HOFT). Further, Zacks announced #4 Rankings (Sell) on two other widely held
stocks: Monster Worldwide, Inc. (NASDAQ: MNST) and Churchill Downs
(NASDAQ: CHDN). 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 — Stocks to Sell Now by 129% annually (+5.3% vs.
+12.1%). 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 SNS and HOFT 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 Steak N Shake Co. (NYSE: SNS) has been hit hard by its inability
to transform the public’s perception of the
establishment as “fast food.”
Steak N Shake’s stock price is down substantially on the
year, dropping from $10 a share to its recent price of just $6. This comes on
the heels of dismal second-quarter results in which revenue was down 6% and
margins were pinched, producing a loss of 10 cents per share.
Hooker Furniture (NASDAQ: HOFT) has been struggling in the incredibly
weak consumer environment that is a product of the country’s economic malaise. Shares of HOFT are trading only
marginally lower on the year in spite of the analyst community slashing their
earnings estimates. The current-year estimate has dropped to $1.20 from $1.90
just 30 days ago. Hooker has missed analyst earnings estimates for the last 2
quarters.
Here is a synopsis of why MNST and CHDN 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;
Monster Worldwide, Inc. (NASDAQ: MNST) has had its earnings estimates
downgraded only marginally by the analyst community, but regardless, its share
price has been under pressure for most of 2008, losing close to half of its
value while dropping from just above $31 to its current price of $18. Much of
the weakness was driven by the company’s disappointing
first-quarter performance in which higher marketing and promotion costs lowered
its profits by 43% from the year before.
Churchill Downs (NASDAQ: CHDN) is suffering the fate of many gaming
and wagering businesses in the United States. As consumers continue to explore
opportunities to cut costs, gambling seems to be a regular presence on the short
list. Shares of CHDN are down more than 30% on the year after dipping from $55
to $35. At these levels, this stock still looks pricey, carrying a forward P/E
multiple of more than 21X.
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
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