5 Best Sectors to Watch This Week

by Portfolio Grader | August 6, 2012 3:00 pm

The Tobacco, Diversified Utilities, Leisure Goods, Water Utilities, and Electric Utilities sectors are on the rise this week on the Portfolio Grader[1] database.

Tobacco is thriving this week with 88% of stocks in the sector (7 out of 8) currently rating a “buy.” Altria (NYSE:MO[2]), Universal Corp. (NYSE:UVV[3]), and Philip Morris International (NYSE:PM[4]) are paving the way for the sector with A grades. Altria is the best performer in this sector, with a 38.7% increase in the last 12 months. This is better than the S&P 500, which has seen a 16.6% increase for the same period.

The Diversified Utilities sector is thriving on Portfolio Grader this week, with 87% of its stocks (20 out of 23) currently rating a “buy.” With overall grades of A, CH Energy (NYSE:CHG[5]), Sempra Energy (NYSE:SRE[6]), and Wisconsin Energy (NYSE:WEC[7]) are buoying the sector. Sempra Energy is the best performer in this sector, with a 44.8% increase in the last 12 months.

Leisure Goods stands out with 86% of the sector’s stocks (6 out of 7) rating a “buy.” Among Leisure Goods stocks, Smith & Wesson (NASDAQ:SWHC[8]), Sturm Ruger (NYSE:RGR[9]), and LeapFrog (NYSE:LF[10]) are leading the way with A’s. Smith & Wesson bests the other stocks in its sector, with a 221.1% increase from a year ago.

With 80% of the sector’s stocks (4 out of 5) rating a “buy,” the Water Utilities sector is one of the strongest. Out of the Water Utilities stocks, American States Water (NYSE:AWR[11]), American Water Works (NYSE:AWK[12]), and Aqua America (NYSE:WTR[13]) are out front with A’s. Showing the most overall growth in its sector in the last 12 months, American Water Works is the top stock, with a 37.3% 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.” NextEra Energy (NYSE:NEE[14]), FirstEnergy (NYSE:FE[15]), and Hawaiian Electric Industries (NYSE:HE[16]) are lifting the sector overall, each earning a high grade of A. Over the last 12 months, NextEra Energy is the best performer in this sector, with a 34.2% increase.

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. MO: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MO
  3. UVV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=UVV
  4. PM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PM
  5. CHG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CHG
  6. SRE: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SRE
  7. WEC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WEC
  8. SWHC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SWHC
  9. RGR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RGR
  10. LF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=LF
  11. AWR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AWR
  12. AWK: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AWK
  13. WTR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WTR
  14. NEE: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NEE
  15. FE: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FE
  16. HE: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HE
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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