Zacks Sell List Highlights: Beacon Roofing, Tyco International, Martha Stewart, and Citi Trends

Business Wire, August 14, 2007

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): Beacon Roofing Supply Inc. (NASDAQ: BECN) and Tyco International Ltd. (NYSE: TYC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Martha Stewart Living Omnimedia Inc. (NYSE: MSO) and Citi Trends Inc. (NASDAQ: CTRN). 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 BECN and TYC 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:

Beacon Roofing Supply Inc. (NASDAQ: BECN) has seen 2007 earnings estimates drop nine cents over the past week. Estimates now stand at 68 cents per share. The company said last week fiscal third-quarter earnings fell sharply after soaring costs and expenses offset rising revenue. Net income in the quarter ended June 30 slid to $11.5 million, or 26 cents per share, from $17.1 million, or 38 cents per share, in the year-ago period.

Tyco International Ltd. (NYSE: TYC) has experienced a sharp drop in analyst estimates. Earnings estimates for this year stand at $1.94 per share, down 58 cents from a week ago. The company said last week it fell to a fiscal third-quarter loss due to hefty charges primarily related to a legal settlement.

Here is a synopsis of why MSO and CTRN 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:

Martha Stewart Living Omnimedia Inc. (NYSE: MSO) has seen its 2007 estimates fall 10 cents to 36 cents per share over the past 30 days. In early August, the company reported its second-quarter losses were much broader than last year, weighed down by one-time charges and declining sales of its merchandise at Kmart, but predicted a return to profitability later this year.

Citi Trends Inc. (NASDAQ: CTRN) saw this year's estimates take a 13 cent-per share fall over the past 30 days. The company said it expects second-quarter profit between 2 cents and 5 cents per share, well below the average estimate of 15 cents per share from analysts.

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.

Zacks Rank performance is the total return (price changes dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR's.

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