Zacks Sell List Highlights Dycom Industries, Hutchinson Technology, Intermune, and The Finish Line.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): Dycom Industries, Inc. (NYSE NYSE See: New York Stock Exchange :DY) and Hutchinson Technology ''This article or section is being rewritten at Hutchinson Technology is an acknowledged world leader in precision manufacturing. Specializing in design and manufacture of close-tolerance products that require chemical, mechanical and electronic technologies. , Inc. (Nasdaq:HTCH). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: InterMune (Nasdaq:ITMN) and The Finish Line, Inc. (Nasdaq:FINL FINL Financial Independent Network Limited ). 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 143.5% annually (12% vs. 4.9% 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 DY and HTCH 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: Dycom Industries, Inc. (NYSE:DY) provided fiscal first-quarter guidance last week that was well below the then consensus estimate. DY, which has missed earnings expectations during two out of the past four quarters, predicted that profits for the quarter ending October 31 would be in the range of 17-23 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. . In contrast, analysts had been projecting profits of 37 cents per share. Following the revised guidance, all of the covering analysts cut their estimates, lowering the consensus estimate to 19 cents per share. Hutchinson Technology, Inc. (Nasdaq:HTCH) slashed its fiscal fourth quarter guidance last week. The company now expects profits to total 5-20 cents per share for the quarter ending September 25, instead of the 55-65 cents per share it previously predicted. Weakness in demand and a shift in products are being blamed for a dramatic drop in gross margins. Following the revised guidance, all of the covering analysts cut their forecasts, resulting in a 46-cent plunge in the consensus estimate to 13 cents per share. Here is a synopsis of why ITMN and FINL 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: InterMune (Nasdaq:ITMN) has missed expectations during two out of the last three quarters. Second quarter losses totaled 74 cents per share, 22 cents worse than projected by analysts. The company blamed lower revenues, a decline in gross margins, and higher costs for the results. ITMN did reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it its full year guidance, predicting sales of $140-$160 million and gross margins of 72-74%. Analysts, however, have been less optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op . Over the past 60 days, the consensus estimate has fallen by 49 cents to a loss of $2.62 per share. The Finish Line, Inc. (Nasdaq:FINL) said 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. fell 2% in August. The company also lowered guidance for both the second quarter and the full year, citing weakened demand for softgoods, competitive pressures, and increased costs. FINL's new guidance calls for second-quarter profits of 37-39 cents per share (versus the previous guidance for 48-50 cents) and full year profits of $1.16-$1.21. All seven covering analysts lowered their forecasts for the second quarter and six of the seven analysts cut their forecasts for the full year. The new consensus estimates of 38 cents and $1.23 per share compare to previous estimates of 49 cents and $1.46. 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 143.5% annually (+4.9% vs. +12%). 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 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. -- 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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