Zacks Sell List Highlights: The Steak N Shake Co., Hooker Furniture, Monster Worldwide, Inc., Churchill Downs

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): The Steak N Shake Co. (NYSE: SNS) and Hooker Furniture (NASDAQ: HOFT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Monster Worldwide, Inc. (NASDAQ: MNST) and Churchill Downs (NASDAQ: CHDN). 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 SNS and HOFT 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:

The Steak N Shake Co. (NYSE: SNS) has been hit hard by its inability to transform the public’s perception of the establishment as “fast food.” Steak N Shake’s stock price is down substantially on the year, dropping from $10 a share to its recent price of just $6. This comes on the heels of dismal second-quarter results in which revenue was down 6% and margins were pinched, producing a loss of 10 cents per share.

Hooker Furniture (NASDAQ: HOFT) has been struggling in the incredibly weak consumer environment that is a product of the country’s economic malaise. Shares of HOFT are trading only marginally lower on the year in spite of the analyst community slashing their earnings estimates. The current-year estimate has dropped to $1.20 from $1.90 just 30 days ago. Hooker has missed analyst earnings estimates for the last 2 quarters.

Here is a synopsis of why MNST and CHDN 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;

Monster Worldwide, Inc. (NASDAQ: MNST) has had its earnings estimates downgraded only marginally by the analyst community, but regardless, its share price has been under pressure for most of 2008, losing close to half of its value while dropping from just above $31 to its current price of $18. Much of the weakness was driven by the company’s disappointing first-quarter performance in which higher marketing and promotion costs lowered its profits by 43% from the year before.

Churchill Downs (NASDAQ: CHDN) is suffering the fate of many gaming and wagering businesses in the United States. As consumers continue to explore opportunities to cut costs, gambling seems to be a regular presence on the short list. Shares of CHDN are down more than 30% on the year after dipping from $55 to $35. At these levels, this stock still looks pricey, carrying a forward P/E multiple of more than 21X.

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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