Zacks Sell List Highlights: Felcor Lodging Trust Inc., Avis Budget Group, Inc., Popular, Inc., Rite Aid Corporation

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): Felcor Lodging Trust Inc. (NYSE: FCH) and Avis Budget Group, Inc. (NYSE: CAR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Popular, Inc. (NASDAQ: BPOP) and Rite Aid Corporation (NYSE: RAD). 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 FCH and CAR 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:

Felcor Lodging Trust Inc. (NYSE: FCH) is currently trading at $8.03, near its 52 week low of $6.95. Ongoing economic weakness continues to effect consumer demand. Marriott International and Host Hotels & Resorts recently lowered their 2008 second-half guidance, indicating further weakness in consumer spending and a difficult business environment for Felcor.

Avis Budget Group, Inc. (NYSE: CAR) has had its earnings estimates slashed by analysts. The current-quarter estimate currently stands at 12 cents per share, down from 21 cents per share last month. The company’s earnings will remain under pressure due to weaker-than expected business travel and airline capacity reduction because of high fuel prices. Avis Budget Group, a leading provider of vehicle rental services, also needs to reduce its fleet after September when seasonal demand slows.

Here is a synopsis of why BPOP and RAD 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;

Popular, Inc. (NASDAQ: BPOP) recently reported second-quarter earnings of 6 cents, short of analyst expectations of 9 cents. The company continues to feel the pressure of uncertainties in the financial markets and a weakened economic environment. Popular, the largest bank in Puerto Rico, is exploring the sale of some of its lower profitable operations in the U.S. This need for liquidity could force the company to come to the market to raise capital again and puts the dividend at risk.

Rite Aid Corporation (NYSE: RAD) projected a wider net loss forecast between 39 cents and 52 cents a share for fiscal 2009 due to interest expense charges for its just-completed refinancing of senior notes. The company had previously forecast a loss between 34 and 48 cents. Rite Aid, one of the largest drug-store chains in the US is in the process of integrating Brooks / Eckerd in order to cut costs. Moving forward, heavy discounting within the industry is expected to pressure earnings.

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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.

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