2008-10-17 20:42:01 -

- 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): Dow Chemical Co. (NYSE: DOW) and Ameron International Corp. (NYSE: AMN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: MetLife, Inc. (NYSE: MET) and Moody's (NYSE: MCO). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: 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 DOW and AMN 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:

Dow Chemical Co. (NYSE: DOW) has outperformed the overall market in 2008, but there is rising fear on the Street that the company may come under severe pressure going forward. Analyst consensus has been adjusted by 7 cents in the last week alone and now stands at $3.00 per share for 2008. The most accurate estimate is more bearish at $2.86 per share. Deteriorating business fundamentals and a delay in the process of ongoing acquisitions may further hurt the stock and erode value for shareholders.

Ameron International Corp. (NYSE: AMN) fell to its lifetime low recently after the company's third-quarter profit missed Wall Street expectations and it cautioned that fourth-quarter profit would dip lower. In the third quarter, net income declined to $15 million, or $1.63 a share, compared with $21.1 million, or $2.32, a year ago. The company blamed tough market conditions in its water transmission and infrastructure products businesses for the disappointing performance. Analysts are now looking at a profit of $5.64 per share in 2008, down from their forecast of $6.86 a month ago.

Here is a synopsis of why MET and MCO 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;

MetLife, Inc. (NYSE: MET) shares recently added to their losses after the insurer announced a discounted sale of its stock in desperation to raise capital for tiding the economic downturn. However, investors did not show much willingness to stand by the latest victim of the credit crisis. MetLife also said third-quarter profit was hurt by a fall in fees earned on variable annuities, poorer returns from investments, and losses incurred due to investments in Lehman and AIG. Analysts have slashed their 2008 view by 25 cents to $5.31 per share.

Moody's (NYSE: MCO) has seen its credit rating policies questioned as the credit crisis deepens. Although the company is not ultimately compensated on the accuracy of its ratings, this neglect is likely to prompt legal action. Moody's might also face large penalties following the SEC's probe into credit-rating policies. Revenue from its largest business segment, Structured Finance, fell 56.7% in the first half and is expected to decline further. Consensus estimates for 2008 profit is pegged at $1.90 per share, down 5 cents from forecasts a month ago.

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 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 +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.

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

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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 at.zacks.com/?id=95.

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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.

Zacks.com
Michael Vodicka
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