Zacks Sell List Highlights: Wendy's International Inc., National City Corp., Xerox Co. and Janus Capital Group

2008-05-01 00:25:08 -

- 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): Wendy's International Inc. (NYSE: WEN) and National City Corp. (NYSE: NCC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Xerox Corp. (NYSE: XRX) and Janus Capital Group (NYSE: JNS). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: 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 129% annually (+5.3% vs. +12.1%). 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 WEN and NCC 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:

Wendy's International Inc. (NYSE: WEN) shares have been in a steady downtrend for most of the past 12 months, topping off at over $42 in June of 2007 and recently bottoming out at just under $22. Wendy's reported weak first quarter results on Apr 24 that profile the fast-food chain's difficulty in growing its profits. Net income was down sharply, coming in at $4.1 million compared to $14.1 million in the same period last year. Estimates for the company continue to fall, with the current-year estimate dropping from $1.39 per share 90 days ago to its current projection of $1.24. On Apr 25, Wendy's and Triarc Inc., the parent company of Arby's, agreed to a $2.3 billion merger.

National City Corp. (NYSE: NCC) is another large-scale financial institution that is feeling the pain from the fallout in the housing and credit markets. The company's share price has been in a free-fall for most of the last year, dropping from over $36 to less than $7. Estimates have been trending lower as well, with the current-year estimate being trimmed from $1.42 90 days ago to its current projection of a loss of 31 cents.

Here is a synopsis of why JNS and XRX 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;

Janus Capital Group (NYSE: JNS) shares have taken a hit in the last six months as market volatility has presented unique challenges to this investment management firm. As recently as December, JNS shares had been trading above the $35 mark, but have proceeded to drop below $22 in mid March. On Apr 24, Janus reported first-quarter results that were below expectations, posting earnings of 23 cents per share against the expected 27 cents. The fund suffered from outflows of $1.5 billion from its core funds due to the volatile nature of recent market conditions. Numerous covering analysts have downgraded their forecasts in the last 30 days, dropping the current-year estimate to its current projection of $1.25 per share.

Xerox Corp's. (NYSE: XRX) share price has been headed in the wrong direction for close to the last 12 months, dropping from a high-water point of over $20 in August of 2007 to its current location of $14. Xerox has been beleaguered by a number of issues, including a weak consumer environment and increased competition that has affected the company's pricing power. Estimates have recently been downgraded by the analyst community, with the latest round of revisions coming just 30 days ago, which dropped the current-year estimate by five cents to its current projection of $1.24 per share.

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 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 +32.2%. 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 underperformed the S&P 500 by 129% annually (+5.3% vs. +12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Visit www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks "Profit from the Pros" 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 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 at.zacks.com/?id=95

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Zacks.com
Michael Vodicka
Phone: 312-265-9226
Email: pr@zacks.com
Visit: www.Zacks.com