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TRANSOCEAN LTD (RIG) - Profit Tracks

By: Zacks.com
Posted: 1/23/2012 12:00:00 AM
Referenced Stocks: KW;RIG;TRW;WST

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 KW and RIG 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:

Kennedy-Wilson Holdings, Inc. ( KW ) announced third-quarter loss of 16 cents per share on November 8 that missed analysts? expectations by 220%. The Zacks Consensus Estimate for the current year decreased to a loss of 14 cents per share from a profit of 11 cents per share in the last 60 days while next year?s estimate increased from a loss of 19 cents per share to 29 cents per share in the same time span.

Transocean LTD ( RIG ) posted a third-quarter profit of 3 cents per share on November 2, which came in 72 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.48 per share from $1.54 per share over the past month. For 2012, analysts expect a profit of $2.97 per share, compared to last month?s projection for a profit of $3.20 per share.

Here is a synopsis of why TRW and WST 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;

TRW Automotive Holdings Corp. ( TRW ) third-quarter profit of $1.37 per share, posted on November 2, lagged analysts? projections by 2.14%. Estimate for current year slid 6 cents per share to $7.08 per share over two months as next year?s estimate dipped 16 cents per share to $6.16 per share in that time span.

West Pharmaceutical Services Inc. ( WST ) reported a third-quarter profit of 53 cents per share on November 1 that fell 3.64% short of the Zacks Consensus Estimate. The full-year average forecast is currently $2.32 per share, compared with last two month?s projection of $2.33 per share. Next year?s forecast dropped to $2.58 per share from $2.60 per share in the same period.
 
KENNEDY-WILSON ( KW ): Free Stock Analysis Report
 
TRANSOCEAN LTD ( RIG ): Free Stock Analysis Report
 
TRW AUTOMTV HLD ( TRW ): Free Stock Analysis Report
 
WEST PHARM SVC ( WST ): Free Stock Analysis Report
 
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