5 Worst Sectors to Avoid This Week

by Portfolio Grader | July 17, 2012 9:15 am

5 Worst Sectors to Avoid This Week

According to the Portfolio Grader[1] database this week, the Auto parts, Metals & Mining, Life Science, Energy Services, and Communications Equipment sectors are at the bottom.

With 72% of its stocks (13 out of 18) rated “sell,” the Auto parts sector is struggling this week. Federal-Mogul (NASDAQ:FDML[2]) and Visteon (NYSE:VC[3]) are dragging down the sector overall, each earning a low grade of F. Gentex (NASDAQ:GNTX[4]) currently ranks D. Visteon is the worst performer in this sector, with a 53.3% decline in the last 12 months. This is worse than the S&P 500, which has seen a 2.8% increase over the same period.

The Metals & Mining sector is trailing behind others this week, with 69% of its stocks (59 out of 85) rated a “sell.” Kinross Gold (NYSE:KGC[5]), Century Aluminum (NASDAQ:CENX[6]), and ArcelorMittal (NYSE:MT[7]) are all currently earning F’s. Overall, Kinross Gold is the poorest performer in this sector. Its share price has dropped 52% in the last 12 months.

The Life Science sector is dragging, with 61% of its stocks (11 out of 18) rated a “sell.” Nordion Inc. (NYSE:NDZ[8]), Bio-Rad Laboratories (NYSE:BIO[9]), and Covance (NYSE:CVD[10]) are dragging down the sector overall, each earning a low grade of D.

The Energy Services sector looks weak, with 61% of its stocks (28 out of 46) rated a “sell.” Out of the Energy Services stocks, Key Energy Services (NYSE:KEG[11]), Baker Hughes (NYSE:BHI[12]), and CARBO Ceramics (NYSE:CRR[13]) are near the bottom with F’s. Key Energy Services is the worst performer in this sector, with a 64.9% decline in the last 12 months.

Communications Equipment is lagging this week with 54% of its stocks (19 out of 35) rated a “sell.” Among Communications Equipment stocks, Nokia (NYSE:NOK[14]), Research In Motion (NASDAQ:RIMM[15]), and Acme Packet (NASDAQ:APKT[16]) are lingering near the bottom with grades of F. Nokia is performing worst overall in the sector, with a 67.5% 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. FDML: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FDML
  3. VC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=VC
  4. GNTX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GNTX
  5. KGC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KGC
  6. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  7. MT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MT
  8. NDZ: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NDZ
  9. BIO: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BIO
  10. CVD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CVD
  11. KEG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KEG
  12. BHI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BHI
  13. CRR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CRR
  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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