Zacks Sell List Highlights: USA Truck Inc., Sun Microsystems Inc., Washington Post Co. & Starbucks Corp.
CHICAGO, Jul 03, 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): USA
Truck Inc. (NASDAQ:USAK) and Sun Microsystems Inc (NASDAQ:JAVA).
Further, Zacks announced #4 Rankings (Sell) on two other widely held
stocks: Washington Post Co. (NYSE:WPO) and Starbucks Corp.
(NASDAQ:SBUX). 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 129% annually (+5.3% vs. +12.1%).
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 USAK and JAVA 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:
USA Truck Inc. (NASDAQ: USAK) is struggling mightily with higher
energy costs, carrying significant exposure to both gasoline and
diesel fuel. The company's stock price has been hit hard over the last
9 months, dropping from $19 to its current price just above $11. USA
Trucking has posted losses in its last two quarters, and analyst
estimates continue to fall, with the current-year estimate dropping
from 22 cents per share 90 days to its current projection of a loss of
18 cents.
Sun Microsystems Inc. (NASDAQ: JAVA) has had a tough run over the
last 9 months, as the company's share price has dropped from $24 a
share last October to its current price just over $10. Analyst
earnings estimates have been plummeting, with the current-year
estimate dropping to 84 cents from $1.15 just 90 days ago. Sun missed
analyst earnings targets last quarter, posting gains of 10 cents
against the projected 19 cents.
Here is a synopsis of why WPO and SBUX 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;
Washington Post Co. (NYSE: WPO) is operating in an industry that
has been confronted with intense competition over the last couple of
years, as newspapers and magazines alike compete for advertising
dollars with online vehicles. This dynamic is showing up in the
company's share price, which is down more than 40% just this year
alone. The Post reported earnings of $5.68 per share in its most
recently reported quarter, 15.73% less than analyst projections.
Starbucks Corp. (NASDAQ: SBUX) just announced that it is planning
to close 600 of its domestic locations, with potential job losses as
high as 12,000. This decision comes on the heels of a litany of
problems that the company has been confronted with, including intense
industry competition and a strained consumer environment. Starbucks
share price has been in a gradual down trend for the last two years.
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 +32.2%. 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 129% annually (+5.3%
vs. +12.1%). 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.
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Disclaimer: Past performance does not guarantee future results.
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SOURCE: Zacks.com
Zacks.com Michael Vodicka, 312-265-9226 Email: pr@zacks.com Visit: www.Zacks.com
Copyright Business Wire 2008



