Stocks With the Highest Percentage Of Sell Ratings Among Those Valued Below $10 (ZLC, DPTR, LVLT)

Some of the stocks that are valued below $10 and have been assigned the most “sell” ratings include:

Shares of jewelry retailer Zale (NYSE: ZLC) have plunged about 40% over the last year, as the company is still fighting against the effects of the recession. Of the four analysts covering Zale, two have a “sell” rating on the stock and two have recommended holding it. Analyst Rick B Patel of Bank of America/Merrill Lynch, who is bearish on ZLC, said, "In our view, the company's strategy to improve comps has yet to materialize and the near term strategy of the company is not clear given management turnover. Additionally, the company has considerable debt on its balance sheet, which creates a drag to improving earnings." Zale fell 3.08%, to $1.89, by 11:05 am today.

Delta Petroleum (NASDAQ: DPTR) shares dropped more than 45% over the last 12 months, after declining sharply in October last year, when the company disclosed poor gas volume results out of the Columbia River Basin. Of the six analysts covering DPTR, 3 have given it an “underperform” rating and 3 have a “hold” rating on the stock. David Tameron, analyst at Wells Fargo Securities, said that the company’s "ability to execute should be very limited over the next 9 months, as the bank group has limited its capital expenditures to $25 million over that period. Combined with its significant debt levels and production profile which should continue to decline, we believe shares will underperform." By 11:05 am today, shares of DPTR declined 4.29%, to $0.96.

Level 3 Communications (NASDAQ: LVLT) has lost more than 20% over the last year. The integrated communications services provider announced an adjusted Q1 loss of $0.11 a share on May 6, which fell in line with the Wall Street view. Of the 15 analysts covering the stock, 7 recommend selling Level 3 Communications, 7 suggest holding it and 1 researcher recommends buying it. LVLT dipped 1.68%, to $1.17, by 11:05 am today.

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