Zacks Sell List Highlights: Builders Firstsource, Eagle Materials, Panera and Microchip Technology.

CHICAGO -- 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): Builders Firstsource Inc. (NASDAQ: BLDR) and Eagle Materials Inc. (NYSE: EXP). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Panera Bread Co. (NASDAQ: PNRA) and Microchip Technology Inc. (NASDAQ: MCHP). 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 129.7% annually (11.9% vs. 5.2% respectively). 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 BLDR and EXP 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:

Builders Firstsource Inc. (NASDAQ: BLDR) has seen this year's earnings estimates drop 20 cents per share over the past two months. Next year's estimates have dropped 46 cents per share. The company said results were hampered by declining commodity prices for lumber and lumber sheet goods, which declined about 15 percent.

Eagle Materials Inc. (NYSE: EXP) has experienced a drop in analyst estimates. Earnings estimates for this year stand at $4.00 per share, down 58 cents from 30 days ago. The company is lowering its annual earnings guidance for fiscal 2007 to $3.80 to $4.20 per diluted share from $4.40 to $4.70 per diluted share. The reduction in annual earnings is primarily attributable to the accelerated decline in housing starts, which has led to weakened business conditions in its Gypsum Wallboard and associated paper businesses.

Here is a synopsis of why PNRA and MCHP 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:

Panera Bread Co. (NASDAQ: PNRA) has been the target of increasing bearishness by analysts. Over the past three months, third-quarter estimates have declined over 20%. The new consensus estimate calls for 35 cents per share this year. The company reported an August same-store sale increase but lowered same-store-sale expectations for the third quarter.

Microchip Technology Inc. (NASDAQ: MCHP) has seen its earnings estimates drop for this year. The current year consensus estimate of $1.46 per share is three cents below the forecast of three months ago. The company said the Thailand coup could affect its ability to meet demand in a period that is typically back-loaded because of the summer holidays in Europe and the start of Christmas work in Asia.

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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." A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.8 million - equivalent to a 32.4% annualized return! 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 145.8% annually (+4.7% vs. +11.6%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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