Zacks Sell List Highlights: Apollo Group, UAL Corp., Toyota Motor, Caribou Coffee Corp

Business Wire, May 21, 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): Apollo Group Inc. (NASDAQ: APOL) and UAL Corp. (NASDAQ: UAUA). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Toyota Motor Corp. (NYSE: TM) and Caribou Coffee (NASDAQ: CBOU). 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 APOL and UAUA 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:

Apollo Group Inc. (NASDAQ: APOL) has been struggling in this distressed credit environment, where student loans are becoming increasingly difficult to secure. This private educational provider's stock price has declined sharply as a result, dropping from over $80 per share earlier in the year to its recent low-point of less than $40 per share. Apollo missed analyst expectations in its last quarter, reporting earnings of 41 cents against the expected 52 cents.

UAL Corp. (NASDAQ: UAUA) is suffering the ill-effects of higher energy costs and a severely weakened consumer economy. These two factors have weighed heavily on the company's stock price, which has taken a beating over the last nine months, dropping from over $50 a share to just over $11 in recent trading. UAL Corp. posted a big loss in its last quarter, posting a loss of $4.45 per share against the expected loss of $3.29. Analyst estimates are headed lower, with the current-year estimate dropping from $1.30 90 days ago to its current projection of a loss of $7.50.

Here is a synopsis of why TM and CBOU 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;

Toyota Motor Corp. (NYSE: TM) has a reputation for making high quality cars. But even this automotive bell weather has struggled in this challenging economic environment. Analyst earnings estimates are not down huge, but none the less, they are still down, with the current-year estimate dropping from $10.30 per share 30 days ago to its current projection of $9.32 per share. The company's stock price has suffered in the meantime, topping off at over $127 per share last summer, and bottoming out at less than $95 per share in early April. With gasoline prices rising, and the cost of materials soaring, this is a company that has some unique challenges in its path to growing earnings.

Caribou Coffee (NASDAQ: CBOU) has struggled amongst intense competition in the coffee sector. A number of other high-profile brands, like McDonalds and Dunkin Donuts, continue to crowd the market space and apply pressure to already thin margins. Caribou has struggled mightily to meet analyst expectations, having missed its earnings targets for the last four quarters by an average of 18 cents, or 97%. Estimates continue to fall, with the current-year estimate dropping from a loss of 70 cents 30 days ago to its current projection of a loss of 92 cents.

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.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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