Zacks Sell List Highlights: Andrx, Adams Respiratory, ADTRAN and Daktronics.CHICAGO -- 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): Andrx Corp. (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 :ADRX ADRX Andrx Corporation (stock symbol) ) and Adams Respiratory Therapeutics Inc. (NASDAQ:ARXT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: ADTRAN Inc. (NASDAQ:ADTN ADTN Administrative Data Transmission Network ADTN Administrative Data Telecommunications Network ) and Daktronics Inc. (NASDAQ:DAKT). 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 129.7% annually (11.9% vs. 5.2% respectively). 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, Zacks told investors which stocks to sell or avoid. Here is a synopsis of why ADRX and ARXT 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: Andrx Corp. (NASDAQ:ADRX) has seen this year's earnings estimates drop 28 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. over the past two months. Next year's estimates have dropped 17 cents per share. Andrx reported second-quarter profits fell 82% from last year. The company has missed earnings estimates in each of the past four quarters. The company is in the process of merging with Watson Pharmaceuticals Watson Pharmaceuticals, Incorporated (NYSE: WPI) is the 5th largest pharmaceutical company in the United States based on number of prescriptions dispensed. Based in Corona, California, Watson's Generics division markets over 150 pharmaceutical product families, including one of the . Adams Respiratory Therapeutics Inc. (NASDAQ:ARXT) has experienced a drop in analyst estimates. Earnings estimates for this year stand at $1.80 per share, down 14 cents from 30 days ago. The stock fell last month after the company said an unnamed drug maker claimed to have filed an abbreviated new drug application abbreviated new drug application Pharmacology An application made in the US by a pharmaceutical company requesting authority to market a 'new' drug for which both its therapeutic indications and formulation were previously approved by the FDA in another similar to the Food and Drug Administration for a competitor to Adams' Mucinex expectorant expectorant /ex·pec·to·rant/ (ek-spek´ter-ant) 1. promoting expectoration. 2. an agent that promotes expectoration. . Here is a synopsis of why ADTN and DAKT 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: ADTRAN Inc. (NASDAQ:ADTN) has been the target of increasing bearishness bear·ish adj. 1. Clumsy, boorish, and surly. 2. a. Causing, expecting, or characterized by falling stock-market prices. b. by analysts. Over the past two months, full year estimates have declined over 12%. The new consensus estimate calls for $1.16 per share this year. The company missed second-quarter estimates by a penny and guided lower for the third quarter as well. Current estimates call for 33 cents per share, down from 41 cents two months ago. Daktronics Inc. (NASDAQ:DAKT) has seen its earnings estimates drop for this year. The current year's consensus estimate of 60 cents per share is 10 cents below the forecast of two months ago. The company missed fiscal first-quarter earnings estimates by 29%. Gross margins have been hurt at the company recently. 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." A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.8 million - equivalent to a 32.4% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return! 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 underperformed the S&P 500 by 145.8% annually (+4.7% vs. +11.6%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively. Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks #1 Rank stocks and highlights those stocks poised to outperform the market. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=94. 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 1978 by Leonard Zacks. As a PhD in mathematics 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. 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. (a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. 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 to buy or sell any security. |
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