2009-12-29 23:04:35 -

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): Kroger Co. (NYSE: KR : ) and Commercial Metals Co. (NYSE: CMC : ).

Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: CKE Restaurants, Inc. (NYSE: CKR : ) and Cintas Corp. (Nasdaq: CTAS : ).

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 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 KR and CMC 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.



Kroger Co.’s (NYSE: KR : ) third-quarter profit of 27 cents per share, reported earlier this month, came in 25% behind the Zacks Consensus Estimate. This marked a 30% decline on a year-over-year basis. For the full year, the average forecast fell 29 cents to a profit of $1.68 per share over the past month as 12 analysts out of 16 revised downward. Next year’s estimate declined to $1.84 per share from $2.16 in the same period.


Commercial Metals Co. (NYSE: CMC : ) posted a wider-than-expected first-quarter loss on Dec 22 as sales at its Americas fabrication and distribution segment slumped 63%. The company’s loss stood at 22 cents per share, compared to analysts’ expectations of a loss of 5 cents. Quarterly revenues fell 39% to $1.45 billion. The Zacks Consensus Estimate for 2010 decreased 67 cents to a profit of 9 cents per share in the last 7 days, reflecting cuts by 7 out of 9 analysts.

Here is a synopsis of why CKR and CTAS 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;


CKE Restaurants, Inc. (NYSE: CKR : ) reported third-quarter earnings of 15 cents per share on Dec 8, which reflected a 50% year-over-year decline. Earnings missed analysts’ projections by a penny. Revenues tumbled 3.7% to $324.2 million. The Zacks Consensus Estimate for the current year moved down 7 cents to 71 cents per share over the past month as all of the 8 covering analysts pulled back on expectations.


Cintas Corp. (Nasdaq: CTAS : ) announced second-quarter earnings of 39 cents per share on Dec 22 that missed the Zacks Consensus Estimate by 7%. The company’s earnings slumped 17% year over year. Revenues slipped 10% to $884 million. The last week has seen downward revisions by 7 analysts out of 10, sending the full-year average forecast lower by 10 cents to $1.63 cents 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 +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 www.zacks.com/performance : for information about the performance numbers displayed in this press release.

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