


Dean Foods, CGG Veritas, Ralcorp Holdings and Onyx Pharmaceuticals
CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List a" Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Dean Foods (NYSE: [ DF ])and CGG Veritas (NYSE: [ CGV ]). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Ralcorp Holdings, Inc. (NYSE: [ RAH ]) and Onyx Pharmaceuticals, Inc. (Nasdaq: [ ONXX ]). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: [ http://at.zacks.com/?id=92 ].
"Earnings estimate revisions are the most powerful force impacting stock prices."
Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List of Stocks to Sell Now by 80% annually (+2% vs. +10%). While the rest of Wall Street continued to tout 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 DF and CGV 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 stocks in the Zacks Rank universe:
Dean Foods (NYSE: [ DF ]) announced first-quarter earnings of 23 cents per share on May 10 that missed analystsa™ expectations by almost 18%. Year over year earnings decreased 56%. The Zacks Consensus Estimate for the current year moved down 2 cents to $1.05 per share in the last 30 days as 3 analysts out of 14 slashed forecasts. Next yeara™s estimate slipped 3 cents to $1.20 per share in the same period.
CGG Veritas (NYSE: [ CGV ]) swung to a first-quarter loss of 2 cents per share last month while the Zacks Consensus Estimate was pegged at a profit of 8 cents. The company earned 46 cents per share in the corresponding quarter a year ago. The full-year average forecast dropped a penny to 60 cents per share over the past month as one analyst out of 4 cut back on projections.
Here is a synopsis of why RAH and ONXX 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;
Ralcorp Holdings, Inc. (NYSE: [ RAH ]) posted second-quarter earnings of $1.12 per share on May 6 that fell 3% short the average forecast. The Zacks Consensus Estimate for 2010 decreased 3 cents to $4.86 per share in the last 30 days as 2 out of 10 analysts revised downward. The following yeara™s estimate slid 4 cents to $5.35 per share during that time, reflecting cuts by 2 out of 9 analysts.
Onyx Pharmaceuticals, Inc. (Nasdaq: [ ONXX ]) reported a first-quarter loss of 10 cents per share on May 4, compared with analystsa™ expectations for a profit of one cent. For 2010, the Zacks Consensus Estimate stands at a loss of 4 cents per share, a penny worse than last montha™s forecast. During that time, next yeara™s estimate declined by a couple of cents to 30 cents per share.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; aZacks Rank Guide: Harnessing the Power of Earnings Estimate Revisionsa 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
Since 1988, the 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 +27%. 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 significantly underperformed the S&P 500 (-0.9% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
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