FWLT (MM)

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List - Stocks to Sell Now by 80% annually (+2% versus +10%). 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 SBS and FXCM 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:

Companhia de Saneamento Basico (ADR) (SBS) reported first-quarter earnings of 96 cents per share on May 13, which came in 2 cents behind analysts? expectations. This apart earnings missed the previous year?s results by 46 cents. The Zacks Consensus Estimate for the current year decreased 35 cents to a profit of $4.55 over the past week. During that period, next year?s forecast fell $1.03 to $7.19 per share in a span of 60 days.

FXCM Inc (FXCM) announced its first-quarter earnings per share of 16 cents on May 16, missing the Zacks Consensus Estimate by 20%. The Zacks Consensus Estimate for 2011 slipped 15 cents to a profit of 82 cents per share in the last 60 days, which reflected reductions by the covering analysts. Next year?s estimate fell 18 cents to $1.21 per share in the same period.

Here is a synopsis of why FWLT and VMC 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;

Foster Wheeler AG (FWLT) saw a 66% year-over-year decline in first-quarter earnings. On May 3, Foster Wheeler reported quarterly earnings of 19 cents per share, which lagged the Zacks Consensus Estimate by nearly 51%. The full-year average forecast dipped 3 cents to a profit of $1.52 per share in the past month.

Vulcan Materials Company?s (VMC) first-quarter loss of 62 cents per share, reported last month, missed analysts? projections by nearly 27%. The Zacks Consensus Estimate for 2011 widened by 5cents to a loss of 76 cents per share in the last 30 days as 3 analysts out of 13 revised downward. The average forecast for the following year declined 3 cents to a loss of 19 cents per share in span of 7 days.
 
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
 
FXCM INC-A (FXCM): Free Stock Analysis Report
 
SABESP -ADR (SBS): Free Stock Analysis Report
 
VULCAN MATLS CO (VMC): Free Stock Analysis Report
 
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