Zacks Sell List Highlights: Lehman Bros Holdings Inc., Sunoco Inc., Advanced Micro...
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Zacks Sell List Highlights: Lehman Bros Holdings Inc., Sunoco Inc., Advanced Micro Devices and JB Hunt Transport Services, Inc. CHICAGO--(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): Lehman Brothers Holdings Inc. (NYSE: LEH) and Sunoco Inc. (NYSE: SUN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: JB Hunt Transport Services Inc. (NASDAQ: JBHT) and Advanced Micro Devices (NYSE: AMD). 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 LEH 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: Lehman Bros. Holdings Inc. (NYSE: LEH) is the latest victim of the big squeeze in financials, as the company has been forced to raise capital to pad its balance sheet after suffering a $2.8 billion loss in its most recent quarter. In turn, the company's share price has taken a beating, dropping from over $66 in late January to its current price just a pinch above $21. Estimates have plummeted with the stock price, with the current-year estimate dropping to a loss of $1.25 from $4.45 just 30 days ago. Sunoco Inc. (NYSE: SUN) has struggled to maintain its profitability as refiners continue to suffer the adverse effects of the "crack spread," the difference in cost between purchasing a barrel of oil and producing consumable gasoline. This market dynamic was the driving force behind the company's first quarter loss, reported on Apr 30, of $59 million, compared to earnings in the same period last year of $175 million. Here is a synopsis of why AMD and JBHT 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; Advanced Micro Devices (NYSE: AMD) share price has been in a steady decline for most of the past year, dropping from over $16 to its current price of less than $8. Much of the loss has been predicated on the company's struggle to move into profitable territory, as AMD has reported losses in each of the last four quarters. Estimates continue to decline, with the current-year estimate dropping from a loss of $1.04 90 days ago to its current projection of a loss of $1.44. JB Hunt Transport Services Inc. (NASDAQ: JBHT) is in a precarious position because of the company's significant exposure to fuel and gasoline prices. The company's share price has been resilient in spite of the company's weak first-quarter results, reported on Apr 15. Income was down 18%, falling short of analyst expectations. The company noted that sales in its trucking segment were down 20%. 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. 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 http://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 http://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 Copyright Business Wire 2008
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