5 Materials Stocks Not Making the Cut Despite Positive Gains

by Louis Navellier | February 23, 2012 12:05 pm

Basic materials stocks are making a comeback this year and have been seeing the kind of positive gains that mirror the rest of the surging market.  However, despite the positive year-to-date performance of this sector, I still have concern for a few of them.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, even during their resurgence, I still consider these five materials stocks to be “sells” or “strong sells” and have received a “D” or “F” according to my research.

E.I. DuPont de Nemours & Co. (NYSE:DD[2]) is involved with manufacturing, seed production and various types of sales. In the past year, DD stock has been on the rise this year, gaining nearly 13%. But the fact that it has dropped  about 3% (compared to a gain of 7% for the Dow Jones in the same time) along with getting a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool has placed them in the dog house in my book this week. For more information, view my complete analysis of DD stock[3].

Mosaic (NYSE:MOS[4]) is a global company that works with concentrated phosphate and potash crop nutrients. MOS has also been moving up along with the rest of the economy, earning 16 YTD. However, they have dropped of 27% in the last 12 months. Along with that fact, MOS stock gets a “D” for operating margin growth, a “D” for earnings growth, a “D” for earnings momentum and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of MOS stock[5].

Owens-Illinois (NYSE:OI[6]) manufactures glass containers in 21 countries. Despite a 25% gain since New Year’s, investors have watched its stock value dip almost 19% since last February. OI stock gets an “F” for operating margin growth, an “F” for earnings momentum, a “D” for the magnitude in which earnings projections have increased over the past month and an “F” for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of OI stock[7].

Potash (NYSE:POT[8]) deals with integrated fertilizer and various feed products. So far, in 2012, POT has gained almost 13%. However, since this time last year, POT stock has slid almost 19%, compared to gains by the broader markets. OT stock gets an “F” for its ability to exceed the consensus earnings estimates on Wall Street and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of POT stock[9].

Sealed Air (NYSE:SEE[10]) develops packaging products for food, industrial, medical and consumer applications. SEE rounds out the list with the biggest loss; 28% in the last year. SEE stock gets a “D” for operating margin growth, an “F” for earnings momentum, an “F” for its ability to exceed the consensus earnings estimates on Wall Street and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of SEE stock[11].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[12] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.

Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. DD: http://studio-5.financialcontent.com/investplace/quote?Symbol=DD
  3. For more information, view my complete analysis of DD stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=dd&submit=submit&type=site
  4. MOS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MOS
  5. For more information, view my complete analysis of MOS stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=mos&submit=submit&type=site
  6. OI: http://studio-5.financialcontent.com/investplace/quote?Symbol=OI
  7. For more information, view my complete analysis of OI stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=oi&submit=submit&type=site
  8. POT: http://studio-5.financialcontent.com/investplace/quote?Symbol=POT
  9. For more information, view my complete analysis of POT stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=pot&submit=submit&type=site
  10. SEE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SEE
  11. For more information, view my complete analysis of SEE stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=see&submit=submit&type=site
  12. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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