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Zacks Sell List Highlights: Healthways, Williams-Sonoma, Blyth Inc. and Sealy Corp.

CHICAGO, Sep 10, 2008 (BUSINESS WIRE) -- 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): Healthways Inc. (NASDAQ: HWAY) and Williams-Sonoma
Inc. (NYSE: WSM). Further, Zacks announced #4 Rankings (Sell) on two
other widely held stocks: Blyth Inc. (NYSE: BTH) and Sealy
Corp. (NYSE: ZZ). 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 81% annually (+2%
versus +11%). 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 HWAY and WSM 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:

Healthways Inc. (NASDAQ: HWAY) hit its lowest mark in five years
after the company forecast first-quarter profit below market
expectations. The healthcare management provider said it expects
quarterly EPS of 34 cents to 37 cents due to contract losses and
renegotiations. Healthways' high-priced services are losing ground as
medical costs continue to rise and consumers look to minimize
discretionary investments. The company will provide 2009 guidance only
in February, which analysts see as a sign of further weakness. Analysts
are projecting EPS of $1.51 in fiscal 2008.

Williams-Sonoma Inc. (NYSE: WSM) shares recently fell further
after the retailer posted a 29 percent drop in quarterly profit and
slashed its 2008 outlook. The home dA(C)cor
retail segment most affected by the economic downturn. The company
forecast 2008 EPS of $1.03-$1.15 versus its prior view of $1.45-$1.58.
Weakening sales trends have continued through August and are worst in
cities most affected by the housing crisis. Analysts now expect 2008 EPS
of $0.98, down from last month's projection of
$1.36.

Here is a synopsis of why BTH and ZZ 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;

Blyth Inc. (NYSE: BTH) recently sank to its lifetime low after
the candle maker's second-quarter profit fell
6% and management trimmed its guidance for fiscal 2009. The company
blamed inflationary pressures and lackluster U.S. sales for its
disappointing performance. It now expects 2009 EPS of $1.35-$1.40, down
from $1.45-$1.50. Blyth is focusing on promotions but has not been able
to completely offset rising input costs with higher pricing. Analysts
have cut their 2009 EPS estimates by 7 cents to $1.20 in the past week.

Sealy Corp. (NYSE: ZZ) reported a 6.6% drop in second-quarter
revenue as cash-strapped consumers stayed away from its expensive
mattresses. Analysts do not expect sales in the U.S. to improve this
year, or even in the first half of 2009. The company is now trying to
lure buyers through discounts and new products, which can further hurt
profits. Sealy is also laden with debt and interest payments that will
further add to the company's troubles.
Analysts expect the company to earn 46 cents a share in 2008.

Truly taking advantage of the Zacks Rank requires the understanding of
how it works. The free special report; "Zacks
Rank Guide: Harnessing the Power of Earnings Estimate Revisions"
is available to provide this insightful background. Download a free copy
now to prosper in the years to come at http://at.zacks.com/?id=93

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 +30%.
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 81% annually (+2% versus +11%). Thus, the
Zacks Rank system allows investors to truly manage portfolio trading
effectively.

Visit http://www.zacks.com/performance
for information about the performance numbers displayed in this press
release.

Zacks "Profit from the Pros"
e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks
and highlights those stocks poised to outperform the market. Subscribe
to this free newsletter today by visiting http://at.zacks.com/?id=94

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was
formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he
could find patterns in stock market data that would lead to superior
investment results. Amongst his many accomplishments was the formation
of his proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. The best way to
unlock the profitable stock recommendations and market insights of Zacks
Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas
GUARANTEED to be worth your time! Register for your free subscription to
Profit from the Pros at http://at.zacks.com/?id=95

Zacks Investment Research is under common control with affiliated
entities (including a broker-dealer and an investment adviser), which
may engage in transactions involving the foregoing securities for the
clients of such affiliates.

Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before making
any investments. Nothing herein should be construed as an offer or
solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com 
Contact: Michael Vodicka 
Phone: 312-265-9226 
Email: pr@zacks.com 
Visit: www.Zacks.com

Copyright Business Wire 2008


 



 
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