Zacks Sell List Highlights: Skechers, Lifepoint, PSS World Medical, and KB Home

Business Wire, July 31, 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): Skechers USA Inc. (NYSE: SKX) and LifePoint Hospitals Inc. (NASDAQ: LPNT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: PSS World Medical Inc. (NASDAQ: PSSI) and KB Home (NYSE: KBH). 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 SKX and LPNT 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:

Skechers USA Inc. (NYSE: SKX) has seen 2007 earnings estimates drop 18 cents over the past week. Estimates now stand at $1.77 per share. said second-quarter net income fell 15% to miss expectations, due to costs for a product launch and accelerated new-store growth.

Lifepoint Hospitals Inc. (NASDAQ: LPNT) has experienced a drop in analyst estimates. Earnings estimates for this year stand at $2.21 per share, down 39 cents from a week ago. The shares fell last week on two analyst downgrades, after the company reported weaker-than-expected second-quarter results and reduced its full-year forecast.

Here is a synopsis of why PSSI and KBH 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:

PSS World Medical Inc. (NASDAQ: PSSI) has seen this year's estimates fall nine cents to 82 cents per share over the past 90 days. The company cut its fiscal 2008 earnings outlook range and said first quarter earnings would be below expectations due to higher costs and weaker sales in its physician business.

KB Home (NYSE: KBH) saw this year's estimates plunge to loss of $3.32 per share from a profit of $1.27 per share over the past 30 days. The company said in late June it swung to a loss in its second quarter, as revenue declined amid weak home sales and lower home prices and the homebuilder booked a major charge to write down unsold inventory.

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.

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