Today we take a peek at some of the notable underperformers, or those expected to underperform, and have taken a tumble down to a Zacks Rank of #5 (Strong Sell):
BLDR Collapsing
After a fairly disastrous earnings report (EPS surprise: -187.50%, income growth: -292.33%) which followed the late October announcement that the company's President and COO were both resigning, Builders FirstSource (BLDR) continues to struggle in the new home building market, which has fallen way off from recent years. Though the construction supplier's stock fell both after the company pre-announced earnings and afterward, apparently brokerage analysts feel there is further yet to fall for the Dallas-based company.
In morning trading, BLDR is down another 5.6% today. The company serves production homebuilders and custom homebuilders in the United States. The company was founded as BSL Holdings, Inc. in 1998 and changed its name to Builders FirstSource, Inc. in 1999.
CHUX Takes It on the Chin
As the casual dining segment continues to lose customers to its cheaper quick-service restaurant (QSR) competition, O'Charley's (CHUX) finds itself downgraded to a Zacks Rank #5 despite over 85% year-over-year earnings growth. That said, its recent -7.14% EPS surprise, -8.11% sales growth and income growth nearly -40% all speak of the ongoing difficulties within the general casual dining market.
Down 21 cents this morning, this equates to roughly a 1.5% loss so far today. O'Charley's, Inc. engages in the ownership and operations of casual dining restaurants primarily in the United States. It operates restaurants under the names O'Charley's, Ninety Nine Restaurants, and Stoney River Legendary Steaks. The company was founded in 1983 and is headquartered in Nashville, Tennessee.
Commercial REIT MPG Struggles
A major fall-off in income growth for commercial real estate investment trust (REIT) Maguire Properties (MPG), the Los Angeles-based real estate operator lays plain the difficulties in this general market at the current time. And with expectations in the REIT market not expected to improve in the near-term for trusts like Maguire, it, too, finds itself at a Zacks Rank #5 and down 3-and-a-half percent this morning.
Midway Crashes
Disappointing new video game release sales of BlackSite: Area 51 have helped push down Chicago video-game developer Midway Games (MWY) to a Zacks Rank #5, along with highly discouraging income growth numbers of -1576%. Its cash and equivalents have fallen precipitously through the first three quarters of 2007, as well. The stock is up a penny or two today, but still wallows around its 52-week low.
Ests Cut at EDS
Though its recent quarterly report didn't show the signs of damage that other stocks on this list have, EDS (EDS) has still dropped to a Zacks Rank #5, largely on lowered estimates for the company in 2008. The consensus numbers are currently down 14 cents. The Texas-based IT giant is down 48 cents today, which equates to a more than two-percent drop in share price.
Read the full analyst report on BLDR.
Read the full analyst report on MPG.
Read the full analyst report on EDS.
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