Zacks Sell List Highlights: Regis, Scholastic, Fred's and Interpublic.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): Regis Corporation Regis Corporation is the largest hair salon chain in the world, with over 11,000 salons (including both company-owned and franchises), it is ranked 778 on the Fortune 1000. (NYSE NYSE See: New York Stock Exchange :RGS RGS Royal Geographical Society RGS Rio Grande do Sul (Brazilian State) RGS Regulators of G Protein Signaling RGS Royal Grammar School (England) RGS Royal Grammar School (UK) ) and Scholastic Corporation (Nasdaq:SCHL SCHL Societé Canadienne d'Hypothèques et de Logement (Canada Mortgage and Housing Corporation) SCHL Southwest Collegiate Hockey League ). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Fred's Inc. (Nasdaq:FRED) and Interpublic (NYSE:IPG IPG Implantable pulse generator, see there ). 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 RGS and SCHL 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: Regis Corporation (NYSE:RGS) warned last week that fiscal third and fourth quarter results would be less than previously forecast. Citing unexpectedly weak sales and product margins, the company now anticipates fiscal 2006 profits to be in the range of $2.10-$2.17 per share versus the previous guidance of $2.31-$2.37 per share. Two of the three covering analysts revised their forecasts in response. The new consensus estimate for fiscal 2006 profits of $2.13 per share is 20 cents below the level of a week ago. Scholastic Corporation (Nasdaq:SCHL) has missed earnings expectations during three out of the past four quarters. Last week, the company reported a fiscal third-quarter loss that was 31 cents wider than analysts had projected. SCHL also cut its guidance for fiscal 2006 to $1.70-$1.80 per share (including 15 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. of severance expenses). One of the two covering analysts responded by cutting his forecast. The new consensus estimate of $1.88 per share is 34 cents below the forecast of a week ago. Here is a synopsis of why FRED and IPG 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: Fred's Inc. (Nasdaq:FRED) reported fiscal fourth-quarter profits of 24 cents per share last week, four cents below analysts' projections. It was the fourth miss in the past five quarters for the company. Looking forward, FRED anticipates earning 71-77 cents per share in 2006, including a three-cent charge for the expensing of stock options. Both covering analysts cut their forecasts in response, causing the consensus estimate to fall by 11 cents to 73 cents per share. Interpublic (NYSE:IPG) has missed earnings expectations for three consecutive quarters. The company recently reported adjusted fourth-quarter profits of 14 cents per share, three cents below analysts' forecasts. Following the report, four of the six covering analysts revised their projections for 2007. The new consensus estimate calls for a one-cent loss; a week ago, the consensus estimate called for a profit of 12 cents per share. 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 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. 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 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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