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Zacks Sell List Highlights: Intel Corp, Photronics Inc, Marriott International Inc, Red Robin Gourmet Burgers
Thursday, October 09, 2008 4:10 PM
Symbols: INTC, MAR, PLAB, RRGB
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(Source: Business Wire)trackingZacks.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): Intel Corp. (NASDAQ: INTC) and Photronics Inc. (NASDAQ: PLAB). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Marriott International Inc. (NYSE: MAR) and Red Robin Gourmet Burgers (NASDAQ: RRGB). 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 81% annually (+2% versus +11%). 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 INTC and PLAB 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:

Intel Corp (NASDAQ: INTC) recently touched its 5-year low amid fears that declining PC orders will take a toll on demand for semiconductors. The shift to low-end notebooks that hurt the company in the second quarter is likely to continue. Even though Intel earns more than 70% of its revenue from the international market, consumer spending in Brazil, Russia, India, and China is coming under pressure due to the global economic turmoil. Analysts have cut their 2008 forecast by a penny to $1.27 per share in the last month.

Photronics Inc (NASDAQ: PLAB) posted a wider quarterly loss than expected, as a downturn in the memory market hurt sales of its photomasks. Third-quarter net loss was $ 205.6 million, or $4.93 a share, compared with a loss of $2.2 million, or 5 cents, a year ago. The photomask sector might face increasing pricing pressure as larger rivals Toppan and Dai Nippon protect their market share in the current economic turmoil. Analysts have raised their loss forecast for 2008 by 3 cents to 41 cents per share.

Here is a synopsis of why MAR and RRGB 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;

Marriott International Inc (NYSE: MAR) reported a 28% drop in third-quarter profit due to the slowdown in its time-share business and guided to "unusually challenging" 2009. The company also cut its fiscal fourth-quarter outlook, prompting analysts to slash their full-year 2008 estimates by 14 cents to $1.64 per share. The operating environment in the lodging sector has declined substantially and does not look well positioned for a rebound.

Red Robin Gourmet Burgers (NASDAQ: RRGB) saw declining traffic long before rising gas prices began choking business in the casual dining sector. We believe the stock will continue to underperform both the larger market and the restaurant industry in the near term. Consensus estimate for 2008 profit has been slashed by 15 cents to $1.95 per share. The most accurate estimate is more bearish at $1.90 a share. The stock trades at a large discount to the industry with a P/E of 9.7X, but a lower valuation is warranted at current levels.

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 +30%. 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 81% annually (+2% versus +11%). 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.




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