Zacks Sell List Highlights: Daimler AG, Corning Inc, Boeing Co, Garmin

Business Wire, Nov 6, 2008

CHICAGO -- 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): Daimler AG (NYSE: DAI) and Corning Inc (NYSE: GLW). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Boeing Co (NYSE: BA) and Garmin (NASDAQ: GRMN). 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 DAI and GLW 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:

Daimler AG (NYSE: DAI) cut its 2008 outlook after its third-quarter earnings fell below Street estimates on slowing auto sales. The company now sees Earnings before Interest and Tax (EBIT) exceeding 6 billion euros, down from its previous forecast of at least 7 billion euros in the full year. More recently, October sales for Mercedes-Benz in the U.S. fell 25%. Weak auto pricing, rising raw material costs, and a slowing U.S. economy have caused analysts to forecast a profit of $4.83 per share in 2008.

Corning Inc (NYSE: GLW) forecast fourth-quarter profit below Wall Street estimates and said it will shut some manufacturing units as a weak economy hurt demand for flat-screen TVs. Quarterly profit is expected to be between 20 and 28 cents per share. The analyst community accordingly lowered its 2008 estimate by 8 cents to $1.72 per share. Corning shares have shed more than half of their value this year and are likely to suffer more as the company anticipates TV sales growth slowing to 5% in the holiday season from the current level of about 10%.

Here is a synopsis of why BA and GRMN 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;

Boeing Co (NYSE: BA) reported a 38% drop in third-quarter earnings, hurt by a labor strike and supplier production problems. Quarterly net income of $695 million, or 96 cents per share, also fell short of Street estimates. Analysts expect a slowdown in plane orders in the next year. While settlement of the Machinists' strike could bring some temporary relief, delays on the 787 Dreamliner will continue to weigh on Boeing shares. The consensus estimate for 2008 now stands at $4.79 per share, down from $5.54, a month ago.

Garmin (NASDAQ: GRMN) saw third-quarter profit dropping by more than 11% due to challenging macroeconomic conditions and cut its 2008 guidance. The company now expects earnings of $3.78 per share, down from its earlier projection of $4.13 for the full year, due to the ongoing economic turmoil and a weak euro. Garmin also anticipates average product prices falling an additional 20% year-over-year during the fourth quarter and the vital holiday season. In the last week alone, analysts have reduced their 2008 forecasts by 19 cents to $3.70 per share.

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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.

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