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Zacks Issues Recommendations on 4 Stocks: AV, NVDA, PAYX and PNC
CHICAGO, Aug 08, 2002 /PRNewswire via COMTEX/ -- Zacks.com releases details on four more 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). These stocks have been proven to under-perform the S&P 500 by 89.8% since its inception in 1980. While the rest of Wall Street continued to tout stocks during the market declines of the last few years, we were telling our customers which stocks to sell in order to save themselves the misery of unrelenting losses. Among the #5 ranked stocks, today we highlight the following companies: Avaya Inc. (NYSE: AV), NVIDIA Corporation (Nasdaq: NVDA), Paychex, Inc. (Nasdaq: PAYX) and PNC Financial Services Group Inc. (NYSE: PNC). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit http://stockstosellpr.zacks.com .Here is a synopsis of why these stocks have a Zacks Rank of 5 (Strong Sell) and should be sold or avoided for the next 1 to 3 months:
Avaya Inc. (NYSE: AV) provides communications systems and software to businesses, government agencies and other organizations. Some of its services and products include voice, converged voice and data, customer relationship management and messaging. Due to weak capital spending and the current economic uncertainty, AV reported a larger-than-expected fiscal third-quarter loss, its fourth consecutive quarter in the red, and plans to cut 2,500 jobs. The workforce reduction, along with other restructuring programs, will cost the company $150 million in the current quarter. The company doesn't expect to see macroeconomic recovery until calendar 2003. As a result, analysts are significantly lowering their estimates on AV as much as 13 cents for 2002 and FY2003 results are moving towards a projected loss. Despite its situation, the company continues to secure deals such as implementing an upgrade for George Washington University and providing technology for Virtual Private Networks to Brasil Telecom. However, there doesn't seem to be much relief in the near-term. Investors might want to look toward other issues until AV gets back on solid ground; meaning at least a couple quarters of solid growth and rising estimates.