Zacks Sell List Highlights: Forest Oil Corp, Health Net Inc, Mattel Inc, Methanex 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): Forest Oil Corp (NYSE: FST) and Health Net Inc (NYSE: HNT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Mattel Inc (NYSE: MAT) and Methanex Corp (NASDAQ: MEOH). 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 81% annually (+2% versus +11%). 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 FST and HNT 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:

Forest Oil Corp (NYSE: FST) reported third-quarter earnings of $1.26 per share, missing market expectations by as much as 16%. The company has also agreed to sell its Rockies natural gas properties at a price 22% lower than original estimates as the credit crisis deepened. Analysts covering the stock have consistently lowered their profit forecasts for the company. Consensus estimates for 2008 earnings is now pegged at $4.76 per share, down from $5.19 a month ago and $5.80 three months ago.

Health Net Inc (NYSE: HNT) sank to its 8-year low after the company posted disappointing third-quarter results and slashed its full-year outlook, hurt by a sharp increase in healthcare costs. Quarterly net income was $18.5 million, or 17 cents per share, with adjusted EPS coming in at 35 cents versus the consensus of 88 cents. The company, which also shuffled its top positions, is losing commercial membership due to stiff competition. Health Net forecast 2008 profit of $1.85-$1.89 per share, down from $2.85-$2.95 earlier.

Here is a synopsis of why MAT and MEOH 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;

Mattel Inc (NYSE: MAT) reported third-quarter profit that trailed Street estimates, hurt by rising input costs and deterioration in some core brands. Quarterly net income was $238.1 million, or 66 cents per share, slightly higher than year-ago figures, when more shares were outstanding. Falling gross margins spooked analysts, prompting them to cut their 2008 forecasts by 8 cents to $1.35 a share. The toymaker’s costs are likely to remain high as revenue growth slows, heightening margin pressures.

Methanex Corp (NASDAQ: MEOH) recently said realized prices in the fourth quarter will be lower than the last quarter, as the global economic slowdown was beginning to weigh on methanol prices. The world’s largest producer of methanol had anticipated an average realized price of $413 per tonne in the third quarter. The analyst community has since then trimmed its full-year estimates for the company to $2.40 per share, down from $2.48, a month ago.

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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 +30%. 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 81% annually (+2% versus +11%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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