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Zacks Sell List Highlights: CRA International, Inc., AAR Corp., Smithfield Foods, Inc. and Kroger Co.
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): CRA International, Inc. (NASDAQ: CRAI) and AAR Corp. (NYSE: AIR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Smithfield Foods, Inc. (NYSE: SFD) and Kroger Co. (NYSE: KR). 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 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 CRAI and AIR 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:
CRA International, Inc. (NASDAQ: CRAI) posted a third quarter profit of 31 cents per share on Oct 1 that missed the Zacks Consensus Estimate by 34%. Weak performance at its financial consulting segment affected its quarterly results. The quarter saw a 20% decline in revenues to $89.3 million. The full-year average forecast slipped to $1.22 per share from $1.42 in the past week as 3 analysts out of 5 cut back on estimates.
AAR Corp.’s (NYSE: AIR) first-quarter earnings per share of 27 cents, reported on Sept 22, marked a 40% decrease on a year-over-year basis. The company’s quarterly revenues fell 5% to $341.5 million. The Zacks Consensus Estimate for the current year is down to $1.48 per share from $1.65 over the past month. Three analysts out of 8 pulled back on projections during that time.
Here is a synopsis of why SFD and KR 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;
Smithfield Foods, Inc. (NYSE: SFD) reported a first quarter loss of 56 cents per share on Sept 8, a penny wider than analysts’ expectations. Results were hurt due to the ongoing troubles in its hog-production division. Sales for the quarter declined to $2.72 billion. The Zacks Consensus Estimate for the full year is currently pegged at a loss of 77 cents per share that widened from an estimated loss of 38 cents over the past two months.
Kroger Co. (NYSE: KR) reduced its full-year profit outlook to a range of $1.90 to $2 per share, down from its prior view of $2 to $2.05 per share. The Zacks Consensus Estimate now stands at $1.95 per share, which dropped from a month-ago forecast of $2.05 as 9 out of 10 analysts lowered expectations. On Sept 15, Kroger posted a second quarter profit of 39 cents per share, 5 cents short of the Zacks Consensus Estimate.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; “Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions” 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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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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