Zacks Sell List Highlights Kyphon, Starwood Hotels, Affymetrix and The Timken Company.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): Kyphon, Inc. (Nasdaq:KYPH) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE NYSE See: New York Stock Exchange :HOT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Affymetrix, Inc. (Nasdaq:AFFX) and The Timken Company The Timken Company (NYSE: TKR) is a major manufacturer of tapered roller bearings and specialty steels located in Canton, Ohio. Their products are used in transportation, industrial equipment, electronics, mining and drilling, and in military applications. (NYSE:TKR TKR Total Knee Replacement TKR Team Knight Rider (TV show) TKR Team Kiwi Racing TKR Tusen Kronor (Swedish currency) TKR Te Kohanga Reo (New Zealand) ). 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 KYPH and HOT 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: Kyphon, Inc. (Nasdaq:KYPH) recently reported fourth-quarter results and provided guidance for 2006. The company earned 34 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. , on a non-GAAP basis, during the fourth quarter, seven cents above expectations. Looking forward, KYP KYP Greek Intelligence Service KYP Keeping You Posted KYP Keep Your Promise expects to generate non-GAAP profits of $1.16-$1.26 per share. The new consensus estimate calls for 2006 profits of $1.01 per share. Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) said last week that fourth-quarter profits totaled 71 cents per share, six cents above expectations. The company also guided for 2006 profits of approximately $2.14 per share. Following the announcement, 13 of the 16 covering analysts revised their forecasts, causing the consensus estimate to fall to $2.15 per share. Notably, even prior to Starwood's guidance, estimates had been falling - over the past 60 days, the consensus forecast for 2006 profits has dropped by a cumulative 33 cents per share. Here is a synopsis of why AFFX and TKR 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: Affymetrix, Inc. (Nasdaq:AFFX) announced fourth-quarter profits of 42 cents per share, 11 cents above expectations. The company's guidance, however, was below the level that analysts had been projecting. AFFX anticipates earning, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, 65 cents per share in 2006. Following the release of the guidance, seven of the eight covering analysts cut their forecasts, causing the consensus estimate to drop 29 cents to 56 cents per share. The Timken Company (NYSE:TKR) generated profits of 54 cents per share in the fourth quarter, ten cents Ten Cents has several meanings:
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 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. (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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion