Zacks Sell List Highlights International Rectifier, Pan American Silver, Advanced Medical Optics, and K2.

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): International Rectifier Corporation (NYSE:IRF) and Pan American Silver Corporation (NASDAQ:PAAS). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Advanced Medical Optics, Inc. (NYSE:EYE) and K2, Inc. (NYSE:KTO). 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 143.5% annually (12% vs. 4.9% 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 IRF and PAAS 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 Zacks ranked stocks:

International Rectifier Corporation (NYSE:IRF) announced last week that fiscal first-quarter revenues fell approximately 3%, on a sequential basis. The company also stated that gross margins declined by about 300 basis points. Previously, the company had guided for revenue growth of 0-4% and gross margin tightening of 0-2%. In reaction to the warning, nine of the ten covering analysts cut their forecasts for fiscal 2006 earnings. The new consensus estimate for profits of $1.90 per share compares to the pre-warning estimate of $2.32 per share.

Pan American Silver Corporation (NASDAQ:PAAS) has missed earnings expectations during four out of the last five quarters. Within the past week, one of the three covering analysts lowered his forecast for 2005 earnings. The new consensus forecast for profits of a penny per share represents a 50% drop from a week prior. In comparison, three months ago, analysts were projecting profits of eight cents per share.

Here is a synopsis of why EYE and KTO 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:

Advanced Medical Optics, Inc. (NYSE:EYE) intends to increase the speed at which it discontinues all non-core cataract and eye care products. Simultaneously, the company intends to boost investment in its refractive product line. As a result, EYE now anticipates 2005 profits to total $1.45-$1.50 per share instead of $1.65-$1.75 per share. All seven of the covering analysts cut their full-year forecasts in response, causing the consensus estimate to fall to $1.48 per share from $1.71 per share.

K2, Inc. (NYSE:KTO) recently said that weak demand for its paintball products would negatively impact earnings. The company cut its guidance for adjusted full-year profits to 75-77 cents per share from 87-91 cents per share. All seven of the covering analysts reduced their forecasts in response, bringing the consensus estimate down by 13 cents to 72 cents per share.

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About the Zacks Rank

For over 17 years, 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 +33%. 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 143.5% annually (+4.9% vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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