Zacks Sell List Highlights: Dollar Tree Stores, Doral, Blyth, and Willis Group Holdings

Business Wire, June 2, 2005

CHICAGO -- 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): Dollar Tree Stores, Inc. (NASDAQ:DLTR) and Doral (NYSE:DRL). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Blyth, Inc. (NYSE:BTH) and Willis Group Holdings, Ltd. (NYSE:WSH). 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 155.5% annually (11.88% vs. 4.65% respectively). 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 DLTR and DRL have a Zacks Rank of 5 (Strong Sell) and should most likely be sold or avoided for the next 1 to 3 months. Note that a #5 Strong Sell rating is applied to 5% of all the Zacks ranked stocks:

Dollar Tree Stores, Inc. (NASDAQ:DLTR) met first quarter estimates with earnings of 26 cents per share. Same-store sales fell 3.7%, however. The company blamed weather conditions for the decline in same-store sales. As part of its earnings report, DLTR issued second-quarter and full-year earnings guidance of 25-27 cents and $1.61-$1.72 per share, respectively. The full year guidance was below the consensus forecast, which had been at $1.73 last week. The new consensus estimate of $1.67 is 8% below the level of 90 days ago.

Doral (NYSE:DRL) issued a letter to its shareholders last week saying that its banking, mortgage origination, insurance, and brokerage businesses are "sound and currently operating strongly". Analysts, however, are becoming more and more pessimistic about how the company will perform this year. During the past 30 days, the consensus estimate for full-year 2005 earnings has plunged 25%.

Here is a synopsis of why BTH and WSH 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) cut its fiscal 2006 guidance in late April to earnings of $2.20-$2.25 per share from $2.35-$2.40. Last week, the company reported fiscal first-quarter profits of 24 cents per share, 12 cents below analysts' estimates. Blyth's CEO Robert Goergen attributed the performance to stronger competition and seasonal factors. Since the release of the company's first-quarter report, analysts have cut their full year expectations by 10 cents to earnings of $2.10 per share.

Willis Group Holdings, Ltd. (NYSE:WSH) missed first-quarter expectations by nine cents per share with earnings of 84 cents. It was the third miss in four quarters for the insurance company. Analysts have been becoming more pessimistic on the company's short-term outlook since the late-April earnings report. During the past 30 days, the consensus estimate has been cut to $2.26 per share from $2.34.

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About the Zacks Rank

For over 17 years, 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 32.8%. 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 155.5% annually ( 4.65% vs. 11.88%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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