Zacks Sell List Highlights: Outback Steakhouse, P.F. Chang's China Bistro, Check Point Software Technologies and VeriSign.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): Outback Steakhouse Outback Steakhouse is a casual dining American restaurant chain based in Tampa, Florida with over 900 locations in 23 countries throughout North and South America, Europe, Asia, and Australia. , Inc. (NYSE NYSE See: New York Stock Exchange :OSI (1) (Open System Interconnection) An ISO standard for worldwide communications that defines a framework for implementing protocols in seven layers. Control is passed from one layer to the next, starting at the application layer in one station, proceeding to the ) and P.F. Chang's China Bistro, Inc. (Nasdaq:PFCB). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Check Point Software Technologies (Nasdaq:CHKP CHKP Check Point Software Technologies Ltd. (stock abbreviation, AMEX) ) and VeriSign (Nasdaq:VRSN VRSN Verisign, Inc. (stock abbreviation, AMEX) VRSN Version Number (NEC) ). 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 (11.8% vs. 4.6% 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 OSI and PFCB 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: Outback Steakhouse, Inc. (NYSE:OSI) said last week that sales at company-owned restaurants fell in April. Domestic 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 Outback Steakhouse restaurants declined 2.2% and average unit volume fell 2.3%. Three of the 13 covering analysts revised their forecasts for full year earnings in response. The new consensus estimate of $1.86 per share is a penny below the forecast of a week ago and 68 cents below the forecast of 60 days ago. P.F. Chang's China Bistro, Inc. (Nasdaq:PFCB) will report first-quarter earnings on Apr 26; the company has missed expectations once in the past two quarters. PFCB said last week that first quarter same-store sales at its namesake restaurants increased 1.3%; however, prices also increased by the same amount. Analysts were unmoved un·moved adj. Emotionally unaffected. unmoved Adjective not affected by emotion; indifferent Adj. 1. by the report as was evident by their decision not to reverse a previous cut in the full year consensus estimate. The current consensus estimate for 2006 profits of $1.40 is 26 cents below the forecast of two months ago. Here is a synopsis of why CHKP and VRSN 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: Check Point Software Technologies (Nasdaq:CHKP) recently revised its guidance for full year earnings. Citing slowing industry growth, a shift in customer preference towards software subscriptions and a change in its decision to acquire Sourcefire, CHKP revised its full year guidance. The company now anticipates generating non-GAAP profits of $1.37 to $1.45 per share. 12 of the 23 covering analysts lowered their forecasts in response, causing the consensus estimate to fall five cents to $1.38 per share. VeriSign (Nasdaq:VRSN) will report first-quarter results on Apr 20. Ahead of the report, analysts have been lowering their expectations for full year earnings. The current consensus estimate of 97 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. is 4% below the forecast of two months ago. Three analysts have cut their estimates within the past 30 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 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 +33%. 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 (+4.6% vs. +11.8%). 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 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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