5 Worst Sectors to Avoid This Week

by Portfolio Grader | August 14, 2012 11:00 am

This week, the Service, Service, Auto Parts, Energy Services, and Communications Equipment sectors look weak according to Portfolio Grader[1].

With 83% of its stocks (71 out of 86) rated “sell,” the Metals and Mining sector is struggling this week. Among Metals and Mining stocks, Aluminum Corp. of China (NYSE:ACH[2]), Alcoa (NYSE:AA[3]), and Century Aluminum (NASDAQ:CENX[4]) are lingering near the bottom with grades of F. Century Aluminum is performing worst in the sector, with a 42.5% drop over the past year. This is worse than the Nasdaq, which saw a 20.5% increase for the same period.

The Service sector is trailing behind others this week, with 67% of its stocks (14 out of 21) rated a “sell.” Out of the Service stocks, DeVry (NYSE:DV[5]), ITT Educational Services (NYSE:ESI[6]), and New Oriental Education & Technology Group (NYSE:EDU[7]) are near the bottom with F’s. DeVry is performing worst overall in the sector, with a 55.9% decline over the last 12 months.

Auto Parts is lagging this week with 65% of its stocks (11 out of 17) rated a “sell.” Out of the Auto Parts stocks, Gentex (NASDAQ:GNTX[8]) andJohnson Controls (NYSE:JCI[9]) are near the bottom of the sector with D’s. Federal-Mogul (NASDAQ:FDML[10]) also ranks a weak F. The worst performer in this sector is Federal-Mogul, which saw its price sink 41.3% in the last 12 months.

The Energy Services sector looks weak, with 58% of its stocks (28 out of 48) rated a “sell.” Tetra Technologies (NYSE:TTI[11]), Key Energy Services (NYSE:KEG[12]), and Basic Energy Services (NYSE:BAS[13]) are dragging down the sector overall, each earning a low grade of F. Over the last 12 months, Basic Energy Services is the worst performer in this sector, with a 49.9% decline.

The Communications Equipment sector is dragging, with 56% of its stocks (19 out of 34) rated a “sell.” Acme Packet (NASDAQ:APKT[14]), Research In Motion (NASDAQ:RIMM[15]), and Polycom Inc. (NASDAQ:PLCM[16]) are pushing the sector down with F grades. Acme Packet is the worst performer for the sector, having declined 69.8% over the last year.

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. ACH: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ACH
  3. AA: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AA
  4. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  5. DV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DV
  6. ESI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ESI
  7. EDU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EDU
  8. GNTX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GNTX
  9. JCI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=JCI
  10. FDML: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FDML
  11. TTI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TTI
  12. KEG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KEG
  13. BAS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BAS
  14. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  15. RIMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RIMM
  16. PLCM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PLCM
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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