Zacks Sell List Highlights: Mercury Interactive, Ruby Tuesday, Airspan Networks, and Radware.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): Mercury Interactive For another company with a similar name, see Mercury Computer Systems. HP Mercury (formerly Mercury Interactive) is a subsidiary of Hewlett-Packard that is a market leader in automated software quality assurance and offers products in other areas such as diagnostics, Corporation (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 :MERQ MERQ Mercury Interactive Corp (stock symbol) ) and Ruby Tuesday, Inc. (NYSE NYSE See: New York Stock Exchange :RI). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Airspan Networks Inc. (NASDAQ:AIRN) and Radware (NASDAQ:RDWR RDWR Read and Write ). 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 155.5% annually (11.88% vs. 4.65% 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 MERQ and RI 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: Mercury Interactive Corporation (NASDAQ:MERQ) warned last week that second-quarter 2005 revenues and earnings would be below previous guidance because of a shortfall in orders from European customers. Sales are now expected to be in a range of $200-$205 million instead of $205-$215 million. Non-GAAP earnings are expected to be a range of 30-35 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. instead of 33-37 cents. Following the warning, 11 analysts cut their forecasts; the new consensus estimate for 34 cents per share is two cents below the level of a week ago. MERQ last missed earnings estimates during the second quarter of 2004. Ruby Tuesday, Inc. (NYSE:RI) missed fiscal fourth-quarter expectations with profits of 40 cents per share; the consensus forecast had call for earnings of 41 cents. 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. at company-owned Ruby Tuesday restaurants fell 8.9%. For the fiscal first-quarter, RI anticipates a 4% decline at company-owned Ruby Tuesday restaurants, which should result in earnings per share of 33 cents. Prior to the release of the new guidance, analysts were predicting fiscal first-quarter profits of 40 cents per share. Here is a synopsis of why AIRN and RDWR 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: Airspan Networks Inc. (NASDAQ:AIRN) said last week that it anticipates second-quarter revenues to be approximately 12% below its previous guidance for $23.8 million. The company was unable to fulfill all of the orders booked for June delivery because of a "lack of availability" for a component used in some of Airspan's Proximity products. Losses for the quarter will also be below guidance, previously set at $2.9 million, because of reduced gross margins and "unforeseen product and period costs". As a result, analysts have slashed their forecasts to a loss per share of 11 cents per share versus a loss of seven cents a week ago. Radware (NASDAQ:RDWR) CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Roy Zisapel opined last week that there appears to be "a lot of confusion" among customers, resellers, and value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. distributors caused by merger and acquisition activity in the application networking space. Zisapel also warned that second-quarter revenues would be approximately $17.5 million instead of the $21 million the company previously forecast. Analysts reacted to the statements by cutting their estimates for the full year to earnings of 69 cents per share, down 22% from a week ago. 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 For over 17 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +32.8%. 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 155.5% annually (+4.65% vs. +11.88%). 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 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 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit From the Pros newsletter 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. (x) 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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