Zacks Sell List Highlights: Old Republic Int'l, Pier 1 Imports, Noble Corporation, and Sears, Roebuck &Company

Zacks.com releases details on a group of stocks that are part of their exclusive list of Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell). Since inception in 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 96.9% annually (12.0% vs. 6.1% respectively). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, we were telling our customers which stocks to sell in order to save themselves the misery of unrelenting losses. Among the #5 ranked stocks today we highlight the following companies: Old Republic International Corporation (NYSE:ORI) and Pier 1 Imports, Inc. (NYSE:PIR). Further they announced #4 Rankings (Sell) on two other widely held stocks: Noble Corporation (NYSE:NE) and Sears, Roebuck &Company (NYSE:S). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://at.zacks.com/?id=92

Here is a synopsis of why these stocks have a Zacks Rank of 5 (Strong Sell) and should most likely be sold or avoided for the next 1 to 3 months. Note that a #5/Strong Sell rating is applied to 5% of all the stocks we rank:

Old Republic International Corporation (NYSE:ORI) is an insurance holding company whose subsidiaries; market, underwrite and provide risk management services for a wide variety of coverages in the property and liability, mortgage guaranty, title and life and health insurance fields. Earnings estimates for the year ending December 2004 are below levels from two months ago for Old Republic by 20 cents, or about -8%. In late April, the company announced that an anticipated weakening of its Mortgage and Title insurance segments led to net operating earnings that dropped from the year-ago quarter. Consolidated net operating earnings, before net realized investment gains or losses, came to 52 cents per share vs. 60 cents last year. That result also fell short of the consensus at the time by almost -15%. However, Old Republic's General Insurance business continued to produce strong underwriting results, which the company said largely offset the lower contributions from the other two segments. At the moment though, investors may want to hold off on opening or deepening a position until its analysts send its earnings estimates higher.

Pier 1 Imports, Inc. (NYSE:PIR) consists of a chain of retail stores operating under the names Pier 1 Imports and The Pier, selling a wide variety of furniture, decorative home furnishings, dining and kitchen goods, accessories and other specialty items for the home. Pier 1 Imports will report its fiscal first quarter results on June 15. Last week, the company pulled back on its diluted earnings per share guidance for the quarter to between 12 cents and 14 cents, compared to its previous expectation of between 14 cents and 17 cents. Pier 1 also noted that May sales improved by +1.2%, while same-store sales declined by -7.6%. The previous expectation was for same-store sales to decline by only -4% to -6%. The company stated that May sales were attributable to the disappointing promotional events over Mother's Day weekend an Memorial Day. Earnings estimates for the year ending February 2005 have moved lower 10 cents, or approximately -7%, over the past month. But Pier 1 is optimistic that customers will respond positively to its marketing plans, which include a new TV ad, the 'One Big Sale'newspaper insert, and innovative visual presentations for the new 'Back-to-College'merchandise assortment. Pier 1 is a leader in its field and the company is working to improve its situation, but in the meantime investors may want to stay patient and watch for analysts to give its earnings estimates a lift.

Below is a synopsis of why these two stocks have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next 1 to 3 months. Note that a #4/Sell rating is applied to 15% of all the stocks we rank:

Noble Corporation (NYSE:NE) is a leading provider of diversified services for the oil and gas industry. Earnings estimates for the year ending December 2004 remain below levels from two months ago for Noble Corporation by 12 cents, or about -9%. The company's industry continues to face some difficulties, and in its first quarter report from mid-April, Noble stated that the U.S. Gulf shelf and West Africa markets have been slow to recover. The company reported net income per diluted share of 21 cents. That was enough to edge past the consensus, but fell from the year-ago level of 30 cents. Nevertheless, Noble knows that drilling markets will be highly volatile in the near term, but said the trend in activity should be positive. Noble should be in a better conditions and challenges in its industry subside, so investors may want to stay patient right now and wait for its earnings estimates to take a turn for the better before making a move.

Sears, Roebuck &Company (NYSE:S) is one of the leading U.S. retailers of apparel, home and automotive products and services. Last week, Sears reported that comparable domestic store revenues declined -3.7% in May, while total domestic store revenues moved lower -4.7%. The company stated that the shift of Memorial Day to the June sales month from May, along with a slackening in consumer demand across most categories, contributed to results that were below expectations. Looking further back to late April, Sears reported a first quarter net loss of (9 cents) per share, before the cumulative effect of a change in accounting principle. That result edged past the consensus but was down from a year-ago profit. The company has experienced some downward revisions from analysts over the past several weeks, and earnings estimates for the year ending December 2004 eroded by 11 cents, or about -3%, from levels achieved 2 months ago. But Sears is one of the most popular retailers in the world, and said it continues to take significant steps to improve the shopability of its stores. Sears should be in a better position moving forward, but for right the best move may be to wait on opening or deepening a position for its earnings estimates to gain more upward momentum.

To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; 'Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.'Download your free copy now to prosper in the years to come. http://at.zacks.com/?id=93

About the Zacks Rank

For over 15 years the Zacks Rank has proven that 'Earnings estimate revisions are the most powerful force impacting stock prices.'Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +34.2% compared to the (a)S&P 500 return of only +12.0%. Plus this exclusive stock list has generated total gains of +139.7% total return since 2000 vs. the worst bear market in over 60 years. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 96.9% annually (12.0% vs. 6.1% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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SOURCE: Zacks.com

Zacks.com Jason Kissinger, 312-630-9880 x 260 myzacks@zacks.com www.Zacks.com

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