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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 Ryland Group, Inc. (NYSE: RYL) and American Express Co. (NYSE:
AXP). Further, Zacks announced #4 Rankings (Sell) on two other widely held
stocks: Nordstrom, Inc. (NYSE: JWN) and Cooper Tire & Rubber
Co. (NYSE: CTB). 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 81% annually (+2% vs. +11%). 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 RYL and AXP 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 Ryland Group, Inc. (NYSE: RYL) reported a loss of $5.70 per share
in 2Q08, worse than a loss of $1.25 per share in the prior-year, due to a
decline in sales and margins as a result of the slowdown in the U.S. housing
market. The company’s gross margins are expected to
remain under pressure due to weaker average selling prices, heightened incentive
use and accelerated option write-offs. Wall Street experts now expect the
company to post a loss of $7.77 per share in fiscal 2008.
American Express Co. (NYSE: AXP) shares slipped $1.08 or 2.8 percent
to $37.99 on Monday, August 18, after increased rates of delinquencies and
defaults in July came to light. Analysts now paint a gloomy scenario of steep
credit losses over the coming six to nine months because of a difficult economic
environment. Reports of sharply higher inflation led AXP shares to become among
the biggest drags on the Dow. The current quarter EPS consensus estimate is
$0.70.
Here is a synopsis of why JWN and CTB 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;
Nordstrom, Inc. (NYSE: JWN) reported second-quarter sales of $2.287
billion, which was in-line with its preliminary report and EPS of $0.65, $0.01
above consensus. However, the company slashed its full-year outlook as the
upscale store chain’s margin is expected to remain under
continuous pressure. The situation is further aggravated as one-third of the
company’s stores are in California, which is
experiencing one of the worst housing markets in the country. While the second
quarter EPS consensus estimate is $0.51, over the last 12 weeks, the stock has
lost 4.91% in value.
Cooper Tire & Rubber Co. (NYSE: CTB) suffered a loss of $22.2
million, or 38 cents per share in the second quarter, compared to a profit of
$17.6 million, or 28 cents per share, in the year-ago period. Wall Street
experts were expecting sales of $734 million in the recent quarter. The company
has also sold its 10.71% stake in Kumho Tire Co., Ltd. to Beacon. The
challenging North American auto environment, elevated raw material costs and
strong competition will continue to chase the company in the near term. The
detailed earnings estimates point to a loss of $0.33 per share in fiscal 2008.
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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