Zacks Sell List Highlights: Sonic Automotive, Macy's Inc, CBRL Group, Huntington Bancshares

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 SAH and M 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:

Sonic Automotive, Inc. (NYSE: SAH | Quote | Chart | News | PowerRating) posted a 59% drop in second-quarter earnings due to a slump in sales of light vehicles for the third consecutive year. Earlier this month, the auto dealership chain had lowered its guidance for the full year as it expects continued weakness in the U.S. auto market.

Macy's, Inc. (NYSE: M | Quote | Chart | News | PowerRating) shares have lost more than half of their value over the past few months as investors panicked over the liquidity position of the Bloomingdale's operator. The company's 2008 earnings guidance of $1.85 to $2.15 is viewed as too optimistic by the Wall Street as Macy's struggles to trim costs and improve sales, which have suffered in the weak U.S. economy with middle-income shoppers pulling back on discretionary spending.

Here is a synopsis of why CBRL and HBAN 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;

CBRL Group, Inc. (NASDAQ: CBRL), the parent of the Cracker Barrel Old Country Store restaurants and gift shops, recently reported a drop in June same-store sales and lowered its guidance for 2008. The company has been hurt as consumers, faced with rising costs for fuel and food in a weak economy, have been cutting back on dining out. The current-year estimate has dropped to 93 cents per share from $1.14 90 days ago.

Huntington Bancshares, Inc. (NASDAQ: HBAN | Quote | Chart | News | PowerRating) recently reported respectable second-quarter earnings but cut its guidance for the rest of the year on expectations of higher loan losses. The U.S. Midwest regional bank's shares have fallen more than 60% this year. Weaknesses in the housing and credit environments will continue to impact the company and the market during 2008, creating the potential for negative overhangs over the next several quarters.

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.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=94.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=95.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com Michael Vodicka Phone: 312-265-9226 Email: pr@zacks.com Visit: www.Zacks.com