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Zacks Sell List Highlights: Citigroup Inc., Sunoco Inc., Virgin Media Inc. and Starbucks Corp.
CHICAGO-(Business Wire)-March 27, 2008 - 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): Citigroup, Inc. (NYSE:C) and Sunoco, Inc. (NYSE:SUN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Virgin Media, Inc. (NASDAQ:VMED) and Starbucks Corp. (NASDAQ:SBUX). 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 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 C and SUN 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:
Citigroup, Inc. (NYSE: C) has been unable to shake the financial blues, as its stock price continues to get hammered amongst continued economic weakness and uncertainty. Citigroup has been hit very hard by the fallout in the credit markets, as the baskets of CDO's in which the company invested have been significantly written down in value. The company has reported dismal quarterly results, and continues to have its earnings outlook downgraded by analysts. Current-year estimates have dropped sharply in the last 90 days, moving to $1.88 to $3.71 per share.
Sunoco, Inc. (NYSE: SUN) is one of the few energy companies that has failed to capitalize on the incredible surge in both the demand and cost of energy. While plenty of other companies carrying exposure to the energy markets have been racking up record gains, Sunoco has been the victim of disappointing quarterly results and a seriously slumping stock price. In 2008 alone, shares have dipped lower to $50 from a high of over $84. Estimates continue to fall, with the current-year estimate dropping to $6.57 from $8.34 just 90 days ago.
Here is a synopsis of why VMED and SBUX 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;
Virgin Media, Inc. (NASDAQ: VMED) has been battling an incredibly dynamic competitive landscape for a number of years, and the company's battles have been reflected in its stock price. Since just last August, shares have dropped from over $30 to their current location of less than $14. Virgin Media has reported losses in each of its last four quarters, with its last miss coming in monumental fashion, as the company came close to missing by 100%. Estimates continue to drop, with the current-year estimate shedding 47 cents in the last 90 days to its current projection of -$2.35 per share.
Starbucks Co. (NASDAQ: SBUX) is right smack in the middle of a massive restructuring program that has been implemented in order to return this one-time high flyer to its lofty perch among the Wall Street elite. According to its stock price, the company still has a long way to go. The company's share price recently dipped below the $17 mark, an area that has not been tested in almost four years. Estimates are down only marginally, with the current-year estimates dropping four cents in the last 60 days, and moving to its current projection of 96 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 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 +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 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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