Zacks Sell List Highlights: J&J Snack Foods Corp., Cablevision Systems, USG Corp. and Anixter Intl

Business Wire, Jan 23, 2008

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): J&J Snack Foods Corp. (NASDAQ: JJSF) and Cablevision Systems (NYSE: CVC). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks USG Corp. (NYSE: USG) and Anixter Intl (NYSE: AXE). 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 JJSF and CVC 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:

J & J Snack Foods Corp. (NASDAQ: JJSF) had a very challenging 2007, as its share price dropped close to 35% of its value, moving from a high point of over $42 per share to less than $30. 2008 is not shaping up much better, with shares already down over 20%. Within the last seven days, the one covering analyst has lowered both current-year and next-year estimates driving each respective consensus estimate significantly lower. The next-year consensus estimate has dropped eight cents to its current reading of $1.92 per share.

Cablevision Systems (NYSE: CVC) is another company that had a very mixed year in 2007, with its stock price locking into a solid uptrend in the first half of the year, but then morphing into a bear in the second half and giving back all of its gains and then some. CVC shares closed the year down over 12%. 2008 is shaping up to be another tough year for Cablevision Systems, as the overall markets have been weak, leading to more downward pressure and additional losses in share value. Estimates for the company have been dropping sharply, with the next-year estimate shedding seven cents in the last 60 days and moving to its current reading of 50 cents per share. The company has missed its earnings projections for the last two quarters by an average of 175%.

Here is a synopsis of why USG and AXE 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:

USG Corp. (NYSE: USG) has been struggling as its core businesses have been seriously affected by the sharp slowdown in the housing and credit markets. 2007 was a tough year for shareholders, as the company's stock lost close to 50% of its value. This Zacks Rank #4 Stock has had its estimates slashed by the analyst community over the last few months, with its next-year consensus estimate dropping 60 cents and shifting lower from 84 cents to its current projection of just 20 cents. The company has struggled to hit analyst estimates, having surprised and missed over the last four quarters by an average of 14 cents, or 21.35%. Analysts are projecting a contraction in sales growth next year of more than 83%.

Anixter Intl (NYSE: AXE) shares have had a very interesting 52-week run, moving from just $55 to over $87, and then back down below $55 once again. Much of the volatility has been fueled by uncertainty in the broader markets, accentuated by increased concern about growth in the technology sector. Within the last seven days, one covering analyst has downgraded his next-year projections, moving the consensus estimate lower by three cents to its current location of $6.31 per share.

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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.

The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.