5 Worst Sectors to Avoid This Week

by Portfolio Grader | August 7, 2012 2:00 pm

For the week, the worst sectors according to Portfolio Grader[1] are the Metals and Mining, Auto Parts, Wireless Telecom, Service, and Communications Equipment sectors.

The Metals and Mining sector is trailing behind others this week, with 73% of its stocks (61 out of 84) rated a “sell.” Kinross Gold (NYSE:KGC[2]), ArcelorMittal SA (NY Reg Sh) (NYSE:MT[3]), and Silver Standard Resources (NASDAQ:SSRI[4]) are all currently earning F’s. Kinross Gold is performing worst overall in the sector, with a 50.5% decline over the last 12 months. This is worse than the S&P 500, which has seen a 16.3% increase over the same period.

Auto Parts is lagging this week with 61% of its stocks (11 out of 18) rated a “sell.” Out of the Auto Parts stocks, Federal-Mogul (NASDAQ:FDML[5]) and Visteon (NYSE:VC[6]) are at the bottom with F’s. Johnson Controls (NYSE:JCI[7]) also has a weak D. Visteon is the worst performer in this sector, with a 43.9% decline in the last 12 months.

The Wireless Telecom sector is dragging, with 59% of its stocks (13 out of 22) rated a “sell.” NII Holdings (NASDAQ:NIHD[8]), Partner Communications (NASDAQ:PTNR[9]), and MetroPCS Communications (NYSE:PCS[10]) are pushing the sector down with F grades. NII Holdings is performing worst overall in the sector with a 79.8% decline for the past year.

With 59% of its stocks (13 out of 22) rated “sell,” the Service sector is struggling this week. With a score of F, Education Management Corp. (NASDAQ:EDMC[11]), DeVry (NYSE:DV[12]) are weighing down the sector. Apollo Group (NASDAQ:APOL[13]) also has a low D. Education Management Corp. is performing worst overall in the sector, with a 83.4% decline over the last 12 months.

The Communications Equipment sector looks weak, with 59% of its stocks (20 out of 34) rated a “sell.” Nokia (NYSE:NOK[14]), Research In Motion (NASDAQ:RIMM[15]), and Acme Packet (NASDAQ:APKT[16]) are dragging down the sector overall, each earning a low grade of F. Over the last 12 months, Research In Motion is the worst performer in this sector, with a 69% decline.

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. SSRI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SSRI
  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. PTNR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PTNR
  10. PCS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PCS
  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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