(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): Ternium (NYSE: TX) and City National Corp. (NYSE: CYN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Novartis (NYSE: NVS) and IDEX Corp. (NYSE: IEX). 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 80% annually (+2% versus +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 TX and CYN 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:
Ternium (NYSE: TX) swung to loss in the fourth quarter due to slumping demand for steel and currency fluctuations. In the latest quarter, the Latin American steelmaker lost $348.5 million, or $1.67 per ADR, compared with a prior-year profit of $221.4 million, or 83 cents. The company expects steel prices to remain low through fiscal 2009.
City National Corp. (NYSE: CYN) posted a quarterly profit that missed market expectations as net interest income fell and provisions for loan losses doubled. The company also cut its quarterly dividend to 25 cents per share from 48 cents. In the fourth quarter, City National's net income fell 86% to $6.5 million, or 13 cents per share. Before items, its profit of 45 cents was 17 cents below the consensus estimate.
Here is a synopsis of why NVS and IEX 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;
Novartis (NYSE: NVS) warned earlier this week that its first-quarter earnings will be hurt by strength of the dollar and increased research costs. The Swiss drugmaker, which reports its results in U.S. dollars, said its quarterly net income will be 8% to 10% lower than expected. The average forecast on the company's 2009 earnings has dropped by 11 cents per share to $3.84 in the last month.
IDEX Corp. (NYSE: IEX) reported a 35% drop in fourth-quarter earnings and said sales would remain under pressure through fiscal 2009.
