Sears Holdings (SHLD)

Sears Holdings&#39; (<a href=http://www.zacks.com/stock/quote/shld>SHLD</a>) vulnerability to continued economic downturn is adversely affecting its top-line growth. The company recorded an 8.6% decline in same-store sales and closed 28 non-performing stores during fiscal 2009 second quarter amid a slump in the housing sector and sluggish apparel sales. <p> Moreover, intense competition from giant discounters, mass merchants and regional stores coupled with the seasonality of business and exposure to foreign currency fluctuations severely undermine the company&#39;s future growth prospects and sustainability. <p> Consequently, we have changed the recommendation for the company from Neutral to Underperform as we anticipate it to perform well below the broader market.

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