(Source: Business Wire)
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): Alcatel-Lucent (NYSE: ALU) and Eaton Vance Corp (NYSE: EV). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Accuray Inc (NASDAQ: ARAY) and Chesapeake Corp (NYSE: CSK). 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 81% annually (+2% versus +11%). 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 ALU and EV 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:
Alcatel-Lucent's (NYSE: ALU) new CEO Verwayyan and Chairman Camus have a tough job of turning the company around after six consecutive quarters of operating losses. The stock fell nearly 5% after the appointments, as many investors had expected chief operating officer Mike Quigley to get the CEO post. Alcatel-Lucent has suffered amid global economic uncertainty and tough competition from low-cost Chinese products. While integration of the French and American halves of the company continues to pose challenges, analysts forecast a small profit of $0.10 per share in 2008.
Eaton Vance Corp (NYSE: EV) reported lower-than-expected profit in the third quarter as its expenses rose and falling stock prices hurt some portfolios of the asset management company. Quarterly net income was $49.6 million, or 40 cents per share, compared with $55.8 million, or 41 cents a share, a year earlier. Currently, the Street consensus on 2008 EPS estimates is $1.71, down 15 cents from the prior forecast. The low dividend yield of 1.72% and a relatively high valuation, combined with the lack of positive catalysts, prompt a bearish stance on Eaton Vance.
Here is a synopsis of why ARAY and CSK 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;
Accuray Inc (NASDAQ: ARAY) recently reported fourth-quarter earnings that fell 62 percent, missing market expectations by some distance. Net income for the quarter was $191,000, or breakeven, down from $502,000, or a penny per share in the same period last year.
