House & Home
House and Home
House and Home
Thu, December 16, 2010
Potlatch, Williams Companies, Encore Wire Corporation and Commercial Metals Company
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): Potlatch Corporation (NYSE: [ PCH ]) and Williams Companies, Inc. (NYSE: [ WMB ]). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Encore Wire Corporation (Nasdaq: [ WIRE ]) and Commercial Metals Company (NYSE: [ CMC ]). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: [ http://at.zacks.com/?id=92 ]
"Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions"
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 PCH and WMB 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:
Potlatch Corporation (NYSE: [ PCH ]) announced third-quarter earnings of 45 cents per share on October 28 that missed analystsa™ expectations by almost 24%. Net earnings reduced by $27,759 million to $18,080 million. The Zacks Consensus Estimate for the current year moved down 14 cents to $1.15 per share in the last 60 days as the covering analysts slashed forecasts. Next yeara™s estimate slipped 21 cents to $1.28 per share in the same period.
Williams Companies, Inc. (NYSE: [ WMB ]) reported a third-quarter profit of 22 cents per share on October 28 which missed the Zacks Consensus Estimate by a penny. On a year-over-year basis the EPS reduced by 12% to $ 1.10 per share. The full-year average forecast dropped a penny to $1.15 per share over the past month as one analyst out of 10 cut back on projections.
Here is a synopsis of why WIRE and CMC 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;
Encore Wire Corporation (Nasdaq: [ WIRE ]) posted third-quarter earnings of 22cents per share on October 27 that fell 15% short the average forecast. The Zacks Consensus Estimate for 2010 decreased 8 cents to 68 cents per share in the last 60 days as the covering analysts revised downward. The following yeara™s estimate slid 12 cents to $1.12 per share during that time.
Commercial Metals Company (NYSE: [ CMC ]) reported a fourth-quarter profit of 7 cents per share on October 29, compared with analystsa™ expectations for a profit of 9 cents. For 2011, the Zacks Consensus Estimate stands at a profit of 72 cents per share, 48 cents lower than the forecasts a couple of months back. During that time, next yeara™s estimate declined by 24 cents to $1.74 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.
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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