5 Best Sectors to Watch This Week

by Portfolio Grader | September 24, 2012 6:00 pm

The Tobacco, Water Utilities, Household Products, Infrastructure, and Leisure Goods sectors are showing strength this week, according to Portfolio Grader[1].

Tobacco is thriving this week with 89% of stocks in the sector (8 out of 9) currently rating a “buy.” Altria (NYSE:MO[2]), Reynolds American (NYSE:RAI[3]), and Philip Morris International (NYSE:PM[4]) are all currently earning A’s. Showing the most overall growth in its sector in the last 12 months, Philip Morris International is the top stock, with a 33.4% increase. This is better than the S&P 500, which has seen a 20.1% increase over the same period.

The Water Utilities sector’s track record is proving one of the best with 80% of its stocks (4 out of 5) rating a “buy.” American Water Works (NYSE:AWK[5]), American States Water (NYSE:AWR[6]), and Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS[7]) are paving the way for the sector with B grades. Over the last 12 months, Companhia de Saneamento Basico do Estado de Sao Paulo is the best performer in this sector, with a 40.5% increase.

With 80% of the sector’s stocks (8 out of 10) rating a “buy,” the Household Products sector is one of the strongest. Out of the Household Products stocks, Kimberly-Clark (NYSE:KMB[8]), Spectrum Brands Holdings (NYSE:SPB[9]), and Church & Dwight (NYSE:CHD[10]) are out front with A’s. Spectrum Brands Holdings is the best performer in this sector, with a 58.1% increase in the last 12 months.

The Infrastructure sector is thriving on Portfolio Grader this week, with 80% of its stocks (4 out of 5) currently rating a “buy.” With overall grades of A, Macquarie Infrastructure (NYSE:MIC[11]), Grupo Aeroportuario del Sureste (NYSE:ASR[12]), and Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB[13]) are buoying the sector. Macquarie Infrastructure beats the other stocks in its sector, with a 78.1% increase from a year ago.

Leisure Goods stands out with 75% of the sector’s stocks (6 out of 8) rating a “buy.” Among Leisure Goods stocks, Smith & Wesson (NASDAQ:SWHC[14]), LeapFrog (NYSE:LF[15]), and Arctic Cat (NASDAQ:ACAT[16]) are leading the way with A’s. Smith & Wesson is the top stock in its sector, with a 287.6% increase from 12 months ago.

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-lf-acat-5/

---