Zacks Sell List Highlights: USA Truck Inc., Sun Microsystems Inc., Washington Post Co. & Starbucks Corp.

CHICAGO--(BUSINESS WIRE)--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): USA Truck Inc. (NASDAQ:USAK) and Sun Microsystems Inc (NASDAQ:JAVA). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Washington Post Co. (NYSE:WPO) and Starbucks Corp. (NASDAQ:SBUX). 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 USAK and JAVA 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:

USA Truck Inc. (NASDAQ: USAK) is struggling mightily with higher energy costs, carrying significant exposure to both gasoline and diesel fuel. The company’s stock price has been hit hard over the last 9 months, dropping from $19 to its current price just above $11. USA Trucking has posted losses in its last two quarters, and analyst estimates continue to fall, with the current-year estimate dropping from 22 cents per share 90 days to its current projection of a loss of 18 cents.

Sun Microsystems Inc. (NASDAQ: JAVA) has had a tough run over the last 9 months, as the company’s share price has dropped from $24 a share last October to its current price just over $10. Analyst earnings estimates have been plummeting, with the current-year estimate dropping to 84 cents from $1.15 just 90 days ago. Sun missed analyst earnings targets last quarter, posting gains of 10 cents against the projected 19 cents.

Here is a synopsis of why WPO and SBUX 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;

Washington Post Co. (NYSE: WPO) is operating in an industry that has been confronted with intense competition over the last couple of years, as newspapers and magazines alike compete for advertising dollars with online vehicles. This dynamic is showing up in the company’s share price, which is down more than 40% just this year alone. The Post reported earnings of $5.68 per share in its most recently reported quarter, 15.73% less than analyst projections.

Starbucks Corp. (NASDAQ: SBUX) just announced that it is planning to close 600 of its domestic locations, with potential job losses as high as 12,000. This decision comes on the heels of a litany of problems that the company has been confronted with, including intense industry competition and a strained consumer environment. Starbucks share price has been in a gradual down trend for the last two years.

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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.

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

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