5 Worst Sectors to Avoid This Week

by Portfolio Grader | July 31, 2012 12:00 pm

5 Worst Sectors to Avoid This Week

According to the Portfolio Grader[1] database this week, the Auto parts, Metals and Mining, Service, Communications Equipment, and Independent Utilities sectors are at the bottom.

The Auto parts sector is trailing behind others this week, with 72% of its stocks (13 out of 18) rated a “sell.” Among Auto parts stocks, Visteon (NYSE:VC[2]) and Federal-Mogul (NASDAQ:FDML[3]) are struggling with grades of F. Johnson Controls (NYSE:JCI[4]) also has a low grade of D. Federal-Mogul is the worst stock in its sector, with the company’s share price falling 50.8% in the last 12 months. This is worse than the Nasdaq’s 6.9% increase over the same period.

Metals and Mining is lagging this week with 69% of its stocks (58 out of 84) rated a “sell.” Among Metals and Mining stocks, Kinross Gold (NYSE:KGC[5]), Silver Standard Resources (NASDAQ:SSRI[6]), and Aluminum Corp. of China (NYSE:ACH[7]) are lingering near the bottom with grades of F. Silver Standard Resources and Aluminum Corp. of China are tied for worst performers in this sector with price drops of 52.3% in the last 12 months.

The Service sector is dragging, with 65% of its stocks (13 out of 20) rated a “sell.” With an overall grade of F, Education Management Corp. (NASDAQ:EDMC[8]), DeVry (NYSE:DV[9]), and ITT Educational Services (NYSE:ESI[10]) are weighing down the sector. Education Management Corp. is the worst stock in its sector, with the company’s share price falling 82.9% in the last 12 months.

The Communications Equipment sector looks weak, with 56% of its stocks (19 out of 34) rated a “sell.” Out of the Communications Equipment stocks, Nokia (NYSE:NOK[11]), Acme Packet (NASDAQ:APKT[12]), and Research In Motion (NASDAQ:RIMM[13]) are near the bottom with F’s. Acme Packet is the worst performer in this sector, with a 74.3% decline in the last 12 months.

With 56% of its stocks (5 out of 9) rated “sell,” the Independent Utilities sector is struggling this week. With a grade of D, NRG Energy (NYSE:NRG[14]) andAtlantic Power (NYSE:AT[15]) are weighing down the sector. TransAlta (NYSE:TAC[16]) also ranks a low F. TransAlta is performing worst overall in the sector, with a 29.9% 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. VC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=VC
  3. FDML: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FDML
  4. JCI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=JCI
  5. KGC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KGC
  6. SSRI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SSRI
  7. ACH: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ACH
  8. EDMC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EDMC
  9. DV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DV
  10. ESI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ESI
  11. NOK: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NOK
  12. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  13. RIMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RIMM
  14. NRG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NRG
  15. AT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AT
  16. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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