House & Home
House and Home
House and Home
Thu, August 26, 2010
Wed, August 25, 2010
Lancaster Colony, Speedway Motorsports, Sanderson Farms and CEC Entertainment
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): Lancaster Colony Corp. (Nasdaq: [ LANC ]) and Speedway Motorsports, Inc. (NYSE: [ TRK ]). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Sanderson Farms, Inc.(Nasdaq: [ SAFM ])and CEC Entertainment, Inc. (NYSE: [ CEC ]). 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 LANC and TRK 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:
Lancaster Colony Corp. (Nasdaq: [ LANC ])posted fourth-quarter earnings of 81 cents per share on August 19, missing the Zacks Consensus Estimate of 98 cents by 17.4%. The full-year average forecast slipped 36 cents to a profit of $3.95 per share over the past week as 3 out of 4 analysts cut back on expectations. Next yeara™s estimate slid 49 cents to $3.92 per share in that time period.
Speedway Motorsports, Inc. (NYSE: [ TRK ]) reported second-quarter earnings of 57 cents per share, on August 4. Earnings missed the Zacks Consensus Estimate by 5%. For 2010 analysts, on average, expect earnings of $1.04 per share which moved down 10 cents over the past month. During that time, the following yeara™s average forecast dropped 5 cents to $1.13 per share.
Here is a synopsis of why SAFM and CEC 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;
Sanderson Farms, Inc.(Nasdaq: [ SAFM ])announced third-quarter earnings of $1.55 per share on August 23 which came in 33 cents short of analystsa™ expectations. Revenues decreased 3.1 % to $ 489.1 million from $504.8 million in the year ago quarter. The Zacks Consensus Estimate for 2010 dipped 6 cents to $ 5.43 per share in the last 7 days as 5 analysts out of 10 reduced forecasts. Estimate for 2011 is $4.99 per share, which fell 41 cents in the same period.
CEC Entertainment, Inc. (NYSE: [ CEC ])reported second-quarter earnings of 35 cents per share on August 5 while analysts anticipated a profit of 45 cents. The Zacks Consensus Estimate for the full year declined 14 cents to $2.69 per share in the last month as all the 7 covering analysts slashed projections. Forecast for next year plunged 11 cents to $3 per share in that time span.
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.
Zacks aProfit from the Prosa e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting [ http://at.zacks.com/?id=94 ]
About Zacks
Zacks.com is a property of Zacks Investment Research, 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 ]
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