5 Best Sectors to Watch This Week

by Portfolio Grader | September 10, 2012 7:45 pm

This week, Leisure Goods, Water Utilities, Household Products, Infrastructure, and Tobacco are the best sectors on the Portfolio Grader[1] database.

Leisure Goods is thriving this week with 88% of stocks in the sector (7 out of 8) currently rating a “buy.” Among Leisure Goods stocks, Smith & Wesson (NASDAQ:SWHC[2]), Arctic Cat (NASDAQ:ACAT[3]), and LeapFrog (NYSE:LF[4]) are leading the way with A’s. Showing the most overall growth in its sector in the last 12 months, Smith & Wesson is the top stock, with a 233.4% increase. This is better than the S&P 500’s 26.4% increase for the same period.

Water Utilities stands out with 80% of the sector’s stocks (4 out of 5) rating a “buy.” Out of the Water Utilities stocks, American Water Works (NYSE:AWK[5]) and American States Water (NYSE:AWR[6]) are out front with A’s. Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS[7]) also has a solid B. Over the last 12 months, Companhia de Saneamento Basico do Estado de Sao Paulo is the best performer in this sector, with a 55.6% increase.

Household Products is excelling, with 80% of stocks in the sector (8 out of 10) rating a “buy.” Kimberly-Clark (NYSE:KMB[8]), Spectrum Brands Holdings (NYSE:SPB[9]), and Church & Dwight (NYSE:CHD[10]) are paving the way for the sector with A grades. Spectrum Brands Holdings is performing the best overall in the sector, with a 56.9% increase from 12 months ago.

The Infrastructure sector’s track record is proving one of the best with 80% of its stocks (4 out of 5) rating a “buy.” Macquarie Infrastructure (NYSE:MIC[11]) and Grupo Aeroportuario del Sureste (NYSE:ASR[12]) are lifting the sector overall, each earning a high grade of A. Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB[13]) currently ranks B. Macquarie Infrastructure is the top stock in its sector, with a 76.5% increase from 12 months ago.

With 78% of the sector’s stocks (7 out of 9) rating a “buy,” the Tobacco sector is one of the strongest. With a score of A, Altria (NYSE:MO[14]), Reynolds American (NYSE:RAI[15]) are buoying the sector. Universal Corp. (NYSE:UVV[16]) also has a solid B. The best performer in this sector is Altria, which saw its price rise 28.3% in 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].

Source URL: https://investorplace.com/2012/09/5-best-sectors-to-watch-this-week-swhc-acat-lf/

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