5 Worst Sectors to Avoid This Week

by Portfolio Grader | July 24, 2012 11:28 am

This week, the Metals and Mining, Auto Parts, Wireless Telecom, Service, and Communications Equipment sectors look weak, according to Portfolio Grader[1].

The Metals and Mining sector is dragging, with 73% of its stocks (61 out of 84) rated a “sell.” Kinross Gold (NYSE:KGC[2]), ArcelorMittal (NYSE:MT[3]), and Century Aluminum (NASDAQ:CENX[4]) are weighing down the sector overall, each earning a low grade of F. Overall, Century Aluminum is the poorest performer in this sector. Its share price has dropped 58.4% in the last 12 months. This is worse than the Nasdaq, which has seen a 0.7% increase over the same period.

With 61% of its stocks (11 out of 18) rated “sell,” the Auto Parts sector is struggling this week. With a grade of F, Federal-Mogul (NASDAQ:FDML[5]), Visteon (NYSE:VC[6]) are weighing down the sector. Johnson Controls (NYSE:JCI[7]) also has a low D. Visteon is the worst performer in this sector, with a 56.5% decline in the last 12 months.

The Wireless Telecom sector is trailing behind others this week, with 59% of its stocks (13 out of 22) rated a “sell.” With an overall grade of F, NII Holdings (NASDAQ:NIHD[8]), MetroPCS Communications (NYSE:PCS[9]), and Partner Communications (NASDAQ:PTNR[10]) are weighing down the sector. NII Holdings is the worst performer in the sector overall, having declined 81.9% in the last year.

The Service sector is lagging this week with 59% of its stocks (13 out of 22) rated a “sell.” Education Management Corp. (NASDAQ:EDMC[11]) and DeVry (NYSE:DV[12]) are dragging down the sector overall, each earning a low grade of F. Apollo Group (NASDAQ:APOL[13]) currently ranks D.

The Communications Equipment sector rounds out the list, with 59% of its stocks (20 out of 34) rated a “sell.” Out of the Communications Equipment stocks, Nokia (NYSE:NOK[14]), Research In Motion (NASDAQ:RIMM[15]), and Acme Packet (NASDAQ:APKT[16]) are near the bottom with F’s. Acme Packet is performing worst overall in the sector, with a 75.8% decline over the last 12 months.

Louis Navellier’s proprietary Portfolio Grader[1] 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[17].

Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. KGC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KGC
  3. MT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MT
  4. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  5. FDML: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FDML
  6. VC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=VC
  7. JCI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=JCI
  8. NIHD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NIHD
  9. PCS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PCS
  10. PTNR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PTNR
  11. EDMC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EDMC
  12. DV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DV
  13. APOL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APOL
  14. NOK: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NOK
  15. RIMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RIMM
  16. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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