Zacks Sell List Highlights: Williams Sonoma, Tetra Tech, Chemtura and SonicWall

Business Wire, Nov 21, 2006

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): Williams Sonoma Inc. (NYSE: WSM) and Tetra Tech Inc. (NASDAQ: TTEK). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Chemtura Corp. (NYSE: CEM) and SonicWall Inc. (NASDAQ: SNWL). 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 a Stocks to Sell Now by 143.6% annually (11.8% vs. 4.8% 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 WSM and TTEK 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:

Williams Sonoma Inc. (NYSE: WSM) has seen this year's earnings estimates drop 14 cents per share over the past week. The company slashed its fourth-quarter and fiscal 2006 guidance, even as third-quarter per-share profit beat Wall Street expectations by one penny.

Tetra Tech Inc. (NASDAQ: TTEK) has experienced a drop in analyst estimates. Earnings estimates for this year stand at 76 cents per share, down seven cents from a week ago. For the fiscal first quarter, Tetra Tech said it expects earnings between 15 cents and 16 cents per share. Analysts are looking for 16 cents per share right now.

Here is a synopsis of why CEM and SNWL 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:

Chemtura Corp. (NYSE: CEM) has been the target of increasing bearishness by analysts. Over the past month, this year's estimates have declined 31 cents per share. The new consensus estimate calls for 35 cents per share this year. The company said late last month it expects third-quarter and second-half earnings to fall substantially below prior expectations, while also announcing the sale of its majority stake in a polymer processing equipment joint venture.

SonicWall Inc. (NASDAQ: SNWL) has seen its earnings estimates drop for next year. The current 2007 consensus estimate of 13 cents per share is three cents below the forecast of a week ago. The company reported a break-even third quarter when analysts were expecting a profit of a penny a share.

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." A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.77 million - equivalent to a 31.8% annualized return! 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 143.6% annually (+4.8% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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