5 Best Sectors to Watch This Week

Leisure Goods, Water Utilities, Diversified Utilities, Tobacco, and Electric Utilities have most buys

   
5 Best Sectors to Watch This Week

For the week, Tobacco, Diversified Utilities, Leisure Goods, Water Utilities, and Electric Utilities are the top sectors on the Portfolio Grader database.

Tobacco is thriving this week with 88% of stocks in the sector (7 out of 8) currently rating a “buy.” With overall grades of A, Altria (NYSE:MO), Universal Corp. (NYSE:UVV), and Philip Morris International (NYSE:PM) are buoying the sector. The best performer in this sector is Altria, which saw its price rise 36.2% in the last 12 months. This outpaces the S&P 500, which has increased just 1.3% from one year ago.

With 87% of the sector’s stocks (20 out of 23) rating a “buy,” the Diversified Utilities sector is one of the strongest. Among Diversified Utilities stocks, CH Energy (NYSE:CHG) and Sempra Energy (NYSE:SRE) are leading the way with grades of A. Wisconsin Energy (NYSE:WEC) also has a top grade of B. Sempra Energy is the best performer in this sector, with a 35.8% increase in the last 12 months.

The Leisure Goods sector is near the top of the Portfolio Grader database this week, with 86% of its stocks (6 out of 7) currently rating a “buy.” Out of the Leisure Goods stocks, Smith & Wesson (NASDAQ:SWHC), Sturm Ruger (NYSE:RGR), and LeapFrog (NYSE:LF) are out front with A’s. LeapFrog is the top stock in its sector, with a 156% increase from 12 months ago.

Water Utilities stands out with 80% of the sector’s stocks (4 out of 5) rating a “buy.” With grades of A, American States Water (NYSE:AWR), American Water Works (NYSE:AWK) are buoying the sector. Aqua America (NYSE:WTR) also has a solid B. Showing the most overall growth in its sector in the last 12 months, Aqua America is the top stock, with a 19.8% increase.

The Electric Utilities sector’s track record is proving one of the best with 74% of its stocks (28 out of 38) rating a “buy.” Among Electric Utilities stocks, NextEra Energy (NYSE:NEE), FirstEnergy (NYSE:FE), and Hawaiian Electric Industries (NYSE:HE) top the list with A’s. Over the last 12 months, NextEra Energy is the best performer in this sector, with a 22.5% increase.

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

 


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/5-best-sectors-to-watch-this-week-swhc-rgr-lf/.

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