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Zacks Sell List Highlights Performance Food Group, Weyerhaeusar Company, Sunterra, and United States Steel.


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): Performance Food Group (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
:PFGC PFGC Performance Food Group Co (stock symbol) ) and Weyerhaeuser Company (NYSE NYSE

See: New York Stock Exchange
:WY). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Sunterra Corporation Started in 1998, Sunterra Corporation (Pink Sheets: SNRR) is in the US$10billion holiday ownership and timeshare industry.

Sunterra has a global turnover in excess of US$300m. External links
  • Official website
  • Better Business Bureau profile
 (NASDAQ:SNRR SNRR Sacramento Northern Railroad
SNRR Serial Number Reporting Requirement
) and United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  Steel Corporation (NYSE:X). 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 PFGC and WY 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:

Performance Food Group (NASDAQ:PFGC) missed earnings expectations during three out of the past four quarters. Analysts appear to be concerned that this trend could continue well into 2005. Three analysts have cut their forecast for 2005 earnings over the past 30 days, lowering the consensus estimate from $1.30 to $1.20 per share. These cuts extend a trend that has caused the consensus estimate to fall a cumulative 19 cents over the past three months.

Weyerhaeuser Company (NYSE:WY) will release second quarter results before the market open on July 21. The company has missed earnings expectations for two consecutive quarters. During the past seven days, six analysts have cut their forecasts for the second quarter. The current estimate for earnings per share of $1.21 is five cents below the level of a week ago and 12 cents below the level of 30 days ago.

Here is a synopsis of why SNRR and X 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:

Sunterra Corporation (NASDAQ:SNRR) recently cut its guidance for fiscal 2005 to net income of $19-$20 million. The company blamed weakness in European timeshare A form of shared property ownership, commonly in vacation or recreation condominium property, in which rights vest in several owners to use property for a specified period each year.  ownership as the reason for the revised guidance. Following Sunterra's announcement, five analysts cut their forecast for fiscal 2005 earnings. The current consensus estimate for earnings of 86 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 eight cents lower than the level of a week prior.

United States Steel Corporation (NYSE:X) will release second quarter results on July 26. Ahead of the report, analysts have been lowering their forecasts. Over the past 30 days, three analysts have cut their projections. The current consensus estimate for earnings per share of $2.13 is seven cents lower than the prediction being made a month 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.

(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.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Jul 20, 2005
Words:994
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