Zacks Sell List Highlights: Lennar Corporation, Urban Outfitters, Applebee's Int'l and Hexcel Corporation.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): Lennar Corporation Lennar Corporation (NYSE: LEN) is a Fortune 200[1] company based in Miami, Florida, United States. It was founded in 1954. Lennar is one of the United States' largest homebuilders, constructing homes in 18 different states throughout the United States, (NYSE NYSE See: New York Stock Exchange :LEN (Low Entry Networking) In SNA, peer-to-peer connectivity between adjacent Type 2.1 nodes, such as PCs, workstations and minicomputers. LU 6.2 sessions are supported across LEN connections. ) and Urban Outfitters Urban Outfitters, Inc. NASDAQ: URBN owns and operates three retail clothing brands: Urban Outfitters, Anthropologie and Free People. The first store opened in 1970 in Philadelphia, Pennsylvania, focusing on "funky" fashion and household products. Inc. (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 :URBN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Applebee's International, Inc. (NASDAQ:APPB APPB Array Processor with Pipelined Bus APPB Application Builder ) and Hexcel Corporation (NYSE:HXL). 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 LEN and URBN 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 Zacks ranked stocks: Lennar Corporation (NYSE:LEN) recently reported fiscal second quarter earnings per share and revenues that increased significantly year over year. However, the homebuilder expects the second half of the year to be more challenging as it faces slower new orders and higher cancellation rates. The company revised its fiscal 2006 earnings per share target downward to between $8 and $8.25, compared to its previous outlook of $9.25. Consequently, analysts have pulled back on estimates for the year ending November 2006 by approximately 9.4% in the past seven 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. . Urban Outfitters Inc. (NASDAQ:URBN) announced fiscal first quarter earnings per share of 12 cents in early May, which fell short of both the year-ago result and the analyst consensus. Sales in the quarter advanced 17% while same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. declined by 3%. The company stated that the seismic shift in women's fashion presents both challenges and opportunities. At the moment, earnings estimates for the year ending January 2007 are below levels from 90 days ago by about 14.6%. Here is a synopsis of why APPB and HXL 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: Applebee's International, Inc. (NASDAQ:APPB) announced late last month that system-wide domestic comparable sales decreased 1.9% for May. The company stated that it experienced broad geographic weakness throughout the system during the period. Applebee's said it will reevaluate its full year 2006 same-store sales and earnings per share guidance in response to the uncertainty in the macro consumer environment. Earnings estimates for the year ending December 2006 declined approximately 3% in the past 30 days. Hexcel Corporation (NYSE:HXL) announced earlier this week that anticipated growth in commercial aerospace revenues may decrease for the second half of 2006 and the first half of 2007. This comes after Airbus announced that deliveries of the A380 aircraft would be delayed. Hexcel said the growth rate may decline to the low single digits for the year. Earnings estimates for the year ending December 2006 are down approximately 6.1% over the past 90 days, including a decline of 1.3% in the past seven days. 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 $1.82 million - equivalent to a 33% 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 129.7% annually (+5.2% vs. +11.9%). 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 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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