Zacks Issues Sell Recommendations on the Following 4 Stocks: ASH, RTN, FLEX and JKHY.Business Editors CHICAGO--(BUSINESS WIRE)--Oct. 30, 2002 Zacks.com releases details on a group of stocks that are part of their exclusive list of Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell). Note that since the Zacks Ranks inception in 1980, the list of #5 ranked stocks have under-performed the S&P 500 by 89.8%. While the rest of Wall Street continued to tout Tout To promote a security in order to attract buyers. tout To foster interest in a particular company or security. For example, a broker might tout a security to a client in the hope that the client will purchase the security. stocks during the market declines of the last few years, we were telling our customers which stocks to sell in order to save themselves the misery of unrelenting losses. Among the #5 ranked stocks today we highlight the following companies: Ashland Inc. (NYSE NYSE See: New York Stock Exchange :ASH) and Raytheon Company (NYSE:RTN RTN Return RTN Raytheon Company (stock symbol) RTN Research Training Network RTN Rotarian RTN Routing Transit Number RTN Recursive Transition Network RTN Register Transfer Notation RTN Radial Tangential Normal ). Further they announced #4 Rankings (Sell) on two other widely held stocks: Flextronics International Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FLEX) and Jack Henry & Associates Inc. (NASDAQ:JKHY JKHY Jack Henry & Associates, Inc (Stock Symbol) ). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://stockstosellprbw.zacks.com/ Here is a synopsis of why these stocks have a Zacks Rank of 5 (Strong Sell) and should most likely be sold or avoided for the next 1 to 3 months. Note that a #5/Strong Sell rating is applied to 5% of all the stocks we rank: Ashland Inc. (NYSE:ASH) provides basic industrial materials and services. The company recorded a stiff earnings slide in its fiscal fourth quarter due mainly to a drop in profits for refining and marketing. The 68-cent result was far below its year-ago performance and more than +5% off of the consensus. ASH had problems meeting the Street's expectation in the previous 3 quarters as well. Furthermore, revenue in the quarter slumped by more than +9%. Over the past month, earnings estimates have slipped by 10 cents for this year and as much as 45 cents for next. The company plans to improve its competitive position and organizational effectiveness Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit moving forward, which is designed to accelerate profitability. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , business conditions remain challenging, so investors may want to consider refraining from opening or deepening a position in ASH until earnings estimates get back on track. Raytheon Company (NYSE:RTN) is a global technology leader in defense, government, and commercial electronics. Although slightly missing the consensus view, the company's third quarter earnings surged back into profitability due to increased military spending. However, the company warned that 2003 earnings will come under pressure due to pension account expenses, and analysts have shown their concern by reducing their estimates. In the past 7 trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , expectations for this year have eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. by only 3 cents but, reflecting the earnings shortfall for 2003, next year's earnings have declined by -21% in that time frame. In addition, some recent revisions have brought this year's expectation slightly below the consensus. Nevertheless, the quarter displayed some good momentum, with revenue improving by about +9%, and the possibility of going to war with Iraq and the ongoing battle against terrorism should keep defense spending healthy. But it's probably best at this moment to hold off on a portfolio addition with RTN until those estimates start moving north. Below is a synopsis of why these two stocks have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next 1 to 3 months. Note that a #4/Sell rating is applied to 15% of all the stocks we rank: Flextronics International Ltd. (NASDAQ:FLEX) is the leading Electronics Manufacturing Services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). provider focused on delivering operational services to technology companies. The company reported a solid fiscal second quarter, with earnings that returned to profitability and matched Wall Street's predictions. Sales jumped by almost +3%. FLEX even said that fiscal third quarter results were on track. But analysts have lowered estimates in the past 7 trading sessions, most likely because FLEX has limited ability to see into the fiscal fourth quarter and thusly thus·ly adv. Usage Problem Thus. Usage Note: Thusly was introduced in the 19th century as an alternative to thus in sentences such as Hold it thus or He put it thus. put guidance below what many analysts had expected. Estimates have pulled back by 5 cents for this year and 12 cents for next. Furthermore, some recent revisions for this year have put expectations slightly below the consensus, which suggests the possibility of further erosion. Despite the fourth quarter's performance, FLEX put together a good quarter and displayed an ability to perform well even during challenging circumstances. Still, the safest move is probably to sit on the sidelines On the sidelines An investor who decides not to invest due to market uncertainty. on the sidelines Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. when in comes to FLEX until analysts get a little more encouragement. Jack Henry & Associates Inc. (NASDAQ:JKHY) provides integrated computer systems and processes ATM and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. transactions for banks and credit unions. The company's first quarter earnings matched the consensus view, but only because it had previously been lowered. JKHY has been experiencing weak sales for its new in-house banking software due to this challenging economy. Analysts have cut back on the company's earnings estimates by 16 cents and 17 cents for this year and next respectively. Nevertheless, revenue for the quarter improved by +2% and a couple of recent revisions have been to the upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside , which could suggest that JKHY has seen the worst of its problems. The company should benefit greatly from a recovery in the economy, but, since no one is sure when that will come or how strong it will be, it may be best to hold off on a portfolio addition with JKHY for the time being. To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://freezrguidebw.zacks.com/ About the Zacks Rank For over 20 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." This exclusive system clearly shows investors which stocks have the best potential to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market...or underperform. Since inception in 1980 #1 Ranked stocks (Strong Buys) have generated an average annual return of +34.0% compared to the (a)S&P 500 return of only +14.7%. Plus this exclusive stock list gained +18.7 in 2001 and +16.2% in 2000; a substantial return compared to the large losses suffered by most investors during that time frame. Just as powerful to knowing what to buy is what to sell. And since 1980 the Zacks #5 Ranked Strong Sells have under performed the S&P 500 by 89.8% annually. This is a healthy change from traditional Wall Street Brokerage firms who only give stocks Sell ratings less than 1% of the time. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio. For continuous coverage of Zacks #1 and #5 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight stocks to buy and sell using our time tested stock evaluation model. http://zacksrankprbw.zacks.com/ The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). . Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1981 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. 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These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. 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 solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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