Zacks Sell List Highlights: Schlumberger, Invesco, Amdocs and Avon Products

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): Schlumberger Ltd. (NYSE: SLB) and Invesco Ltd. (NYSE: IVZ). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Amdocs Ltd. (NYSE: DOX) and Avon Products Inc. (NYSE: AVP). 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 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 SLB and IVZ 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:

Schlumberger Ltd. (NYSE: SLB) reported a 17% drop in quarterly profit last month, hurt by sharp drops in energy prices and warned of customers further cutting back on spending in 2009. The oilfield service giant’s fourth-quarter net income was $1.15 billion, or 95 cents per share. Before one-time items, Schlumberger’s profit of $1.03 per share fell 4 cents short of the consensus estimate.

Invesco Ltd.’s (NYSE: IVZ) fourth-quarter profit slumped 82% as the volatile markets eroded client assets, forcing the company to write off investment losses. Its quarterly net income was $31.9 million, or 8 cents per share. Excluding exceptional costs, Invesco’s profit of 17 cents a share was a penny shy of the average forecast. The consensus estimate for the company’s 2009 earnings is now pegged at 87 cents, down from 98 cents a week ago.

Here is a synopsis of why DOX and AVP 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;

Amdocs Ltd. (NYSE: DOX) posted first-quarter revenue that was far below its own guidance, as macro-economic conditions led service providers into cutting spending and delaying new projects. The company forecast the weakness continuing in the current second quarter with sales cycles lengthened across the board. Amdocs earned $74.2 million or 35 cents a share in the first quarter. The consensus estimate has fallen by a penny to $1.86 per share in the last week.

Avon Products Inc. (NYSE: AVP) missed the consensus forecast on its fourth-quarter profit, hurt by lackluster sales and a stronger dollar. The cosmetics maker’s net income came in at $232.4 million, or 54 cents per share, while analysts were expecting 61 cents. Avon also expects 2009 to remain challenging and it plans to cut spending to offset the economic downturn. The consensus estimate has dropped to $1.96 per share from $2.01 after the results.

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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 +28%. 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 80% annually (+2% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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