CHICAGO--(BUSINESS
WIRE)--May 25, 2004--Zacks.com releases details on
a group of stocks that are part of their exclusive
list of Stocks to Sell Now. These stocks are currently
rated as a Zacks Rank #5 (Strong Sell). Since inception
in 1988 the S&P 500 has outperformed the Zacks
#5 Ranked Strong Sells by 96.9% annually (12.0% vs.
6.1% respectively). While the rest of Wall Street
continued to tout stocks during the market declines
of the last few years, we were telling our customers
which stocks to sell in order to save themselves the
misery of unrelenting losses. Among the #5 ranked
stocks today we highlight the following companies:Kopin
Corporation (NASDAQ:KOPN) and Wilson Greatbatch Technologies
(NYSE:GB). Further they announced #4 Rankings (Sell)
on two other widely held stocks: Dean Foods Company
(NYSE:DF) and Internet Security Systems, Inc. (NASDAQ:ISSX).
To see the full Zacks #5 Ranked list of Stocks to
Sell Now then visit: http://at.zacks.com/?id=92
Here is a synopsis of why these stocks have a Zacks
Rank of 5 (Strong Sell) and should most likely be
sold or avoided for the next 1 to 3 months. Note that
a #5/Strong Sell rating is applied to 5% of all the
stocks we rank:
Kopin Corporation (NASDAQ:KOPN) is pioneering the
use of nanotechnology to manufacture nanosemiconcuctor
products that make mobile electronic devices small,
fast, bright, lightweight and power efficient. Earnings
estimates for the year ending December 2004 remain
below levels from two months ago, as analysts have
moved expectations from a profit to a loss. Mid-April
saw the company report a first quarter net loss of
(5 cents) per share, which was steeper than the consensus
at the time. The company said the loss primarily reflects
lower initial yields associated with the transition
from its legacy monochrome microdisplays to new color
filter CyberDisplay products, along with additional
marketing and technical support associated with increased
color display activities. However, Kopin also reported
that robust demand from wireless and consumer electronics
customers helped first quarter revenue to grow +24%
year-over-year. Kopin also expects continued revenue
growth for the second quarter, but investors may want
to stay cautious at the moment and delay a position
in this innovative company for a little while longer,
until analysts give its earnings estimates a lift.
Wilson Greatbatch Technologies (NYSE:GB) is a leading
developer and manufacturer of batteries, capacitors,
precision components, and enclosures for implantable
medical devices. Earlier this month, Wilson Greatbatch
announced that it expects sales revenue for the full
year 2004 to range between $220 million and $230 million,
compared to its previous guidance of between $240
million and $245 million. The company said it received
notification from a major customer to stop shipments
of certain medical components for a period of time
within the second quarter. Those medical components
include feedthroughs and enclosures. Earnings estimates
for the year ending December 2004 moved lower by 12
cents, or about -10% over the past seven trading days.
Nevertheless, a few days earlier, Wilson Greatbatch
had reported solid first quarter numbers, including
earnings per share that topped the consensus and year-ago
performance, and the company expects results will
reflect industry growth rates by the fourth quarter.
The company is situated in a growing field, but for
now investors may want to wait on opening or deepening
a position until its earnings estimates get back on
track.
Below is a synopsis of why these two stocks have a
Zacks Rank of 4 (Sell) and should also most likely
be sold or avoided for the next 1 to 3 months. Note
that a #4/Sell rating is applied to 15% of all the
stocks we rank:
Dean Foods Company (NYSE:DF) is the nation's leading
processor and distributor of fresh milk and other
dairy products, and a leader in the specialty foods
industry. For its first quarter, Dean Foods reported
adjusted earnings of 45 cents per diluted share early
this month, which matched the consensus and topped
the year-ago performance, as net sales advanced +14%.
However, the company said 2004 will be a challenging
year as it faces one of the most difficult commodity
environments it has ever seen, and that the brunt
of such high commodity costs will impact the second
quarter. Dean Foods forecasted second quarter adjusted
earnings of between 47 cents and 50 cents per share,
which was beneath the consensus at the time, due to
the high costs of raw milk and other commodities along
with heavy brand marketing spending in the quarter.
The company has experienced some downward revisions
from analysts, and its earnings estimates for the
year ending December 2004 moved lower 7 cents, or
approximately -3%, from levels achieved one month
ago. Dean Foods is working to manage through these
commodity cost increases, and remains confident in
its long-term goal of +8% to +10% earnings per share
growth. However, for the time being, the best move
may be to stay patient and wait for its earnings estimates
to gain more upward momentum.
Internet Security Systems, Inc. (NASDAQ:ISSX) is a
leading global provider of security management solutions
for protecting e-business. Earnings estimates for
the year ending December 2004 remain below levels
from two months ago for Internet Security Systems
by 3 cents, or about -5%. In its first quarter report,
announced in late April, the company posted non-GAAP
net income of 13 cents per share. That result matched
the year-ago performance, but came in a penny, or
more than -7%, below the consensus at the time. But
Internet Security Systems still reported revenues
that advanced by +13% in the quarter, and the company
continues to deliver new products and services that
offer preemptive protection to organizations of all
sizes. Internet Security Systems is a leading presence
in its space thanks to innovative products such as
its Proventia(TM) product line, but investors may
want to hold off on allocating funds to ISSX until
analysts push the company's earnings estimates upward.
To truly take advantage of the Zacks Rank, you need
to first understand how it works. That's why we created
the free special report; "Zacks Rank Guide: Harnessing
the Power of Earnings Estimate Revisions." Download
your free copy now to prosper in the years to come.
http://at.zacks.com/?id=93
About the Zacks Rank
For over 15 years the Zacks Rank has proven that "Earnings
estimate revisions are the most powerful force impacting
stock prices." Since inception in 1988 the #1
Ranked stocks have generated an average annual return
of +34.2% compared to the (a)S&P 500 return of
only +12.0%. Plus this exclusive stock list has generated
total gains of +139.7% total return since 2000 vs.
the worst bear market in over 60 years. Also note
that the Zacks Rank system has just as many Strong
Sell recommendations (Rank #5) as Strong Buy recommendations
(Rank #1). And since 1988 the S&P 500 has outperformed
the Zacks #5 Ranked Strong Sells by 96.9% annually
(12.0% vs. 6.1% respectively). Thus, the Zacks Rank
system can truly be used to effectively manage the
trading in your portfolio.
For continuous coverage of Zacks #1 and #5 Ranked
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