Zacks Sell List Highlights: Analog Devices, Vishay Intertechnology, American Power Conversion, and Ruby Tuesday

Business Wire, Oct 19, 2004

CHICAGO -- 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): Analog Devices, Inc. (NYSE:ADI) and Vishay Intertechnology, Inc. (NYSE:VSH). Further they announced #4 Rankings (Sell) on two other widely held stocks: American Power Conversion Corporation (NASDAQ:APCC) and Ruby Tuesday (NYSE:RI). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://at.zacks.com/?id=92

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 141.8% annually (11.97% vs. 4.5% respectively). 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 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 Zacks ranked stocks:

Analog Devices, Inc. (NYSE:ADI): During its fiscal third quarter report in August, Analog Devices said it expects fiscal fourth quarter revenue to be approximately flat with the sequential quarter, as customers seem to have become more cautious in the short-term. It also expects EPS to be about the same as the fiscal third quarter, which would put the result below the consensus. For the fiscal third quarter, Analog Devices posted diluted EPS of 43 cents, which was a sharp increase from the prior year but still below the consensus by more than -4%. Earnings estimates for the year ending this month are down 8 cents, or approximately -5%, from three months ago. Analog Devices will report its next round of quarterly numbers on November 23.

Vishay Intertechnology, Inc. (NYSE:VSH) recently announced that it expects third quarter revenues of $580 million, which was less than what many analysts were expecting, and fourth quarter revenues no higher than that of the third quarter. The company has not seen the improvement in bookings it had expected. Previously, Vishay Intertechnology expected fourth quarter revenues to be up sequentially. Earnings estimates for the year ending December 2004 are below levels from three months ago by 15 cents, or about -15%, including a slide of 8 cents, or approximately -9%, from two months ago. The company is scheduled to report its third quarter numbers on November 3.

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 ranked by Zacks:

American Power Conversion Corporation (NASDAQ:APCC) will report its third quarter results on October 28. For its second quarter in late July, the company announced net income of 13 cents per share, vs. last year's 17 cents. The result also fell short of the consensus by about -35%. However, revenue rose 19% from last year, while investments in new products and in selling and marketing programs bolster the top line and position the company for long-term success. But, earnings estimates for the year ending December 2004 are down 28 cents, or about -30%, in the past three months, so investors may want to wait on a position for now.

Ruby Tuesday (NYSE:RI): Earlier this month, Ruby Tuesday announced fiscal first quarter diluted EPS of 44 cents, which topped the year-ago result and matched the consensus. However, for its fiscal second quarter, the company expects negative same-store sales of -4% to -6% for company-owned restaurants, and, based on that, diluted EPS are expected to be flat with last year. Several of the company's stores were impacted by the hurricanes. Furthermore, Ruby Tuesday has no plans for promotional/couponing efforts for the second quarter in conjunction with its shift towards the utilization of media advertising. Earnings estimates for the year ending May 2005 are down 8 cents, or about -4%, in the past two months, including a slide of 6 cents or approximately -3%, in the past 30 trading days.

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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 33.1% compared to the (a)S&P 500 return of only 11.97%. 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 141.8% annually (11.97% vs. 4.5% respectively). Thus, the Zacks Rank system can truly be used to effectively manage portfolio trading.