5 Worst Sectors to Avoid This Week

by Portfolio Grader | September 4, 2012 5:45 pm

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

Metals and Mining is lagging this week with 85% of its stocks (74 out of 87) rated a “sell.” Among Metals and Mining stocks, HudBay Minerals (NYSE:HBM[2]), Century Aluminum (NASDAQ:CENX[3]), and Molycorp (NYSE:MCP[4]) are lingering near the bottom with grades of F. Overall, Molycorp is the poorest performer in this sector. Its share price has dropped 78.3% in the last 12 months. This is worse than the S$P 500′s 19.5% increase during the same period.

The Marine sector is trailing behind others this week, with 63% of its stocks (5 out of 8) rated a “sell.” Out of the Marine stocks, DryShips (NASDAQ:DRYS[5]) and Kirby Corp. (NYSE:KEX[6]) are near the bottom of the sector with D’s. Diana Shipping (NYSE:DSX[7]) also ranks a weak F. DryShips is the worst stock in its sector, with the company’s share price falling 25.8% in the last 12 months.

The Communications Equipment sector looks weak, with 60% of its stocks (21 out of 35) rated a “sell.” Nokia (NYSE:NOK[8]), Acme Packet (NASDAQ:APKT[9]), and Alcatel-Lucent (NYSE:ALU[10]) are pushing the sector down with F grades. Alcatel Lucent is the worst performer in this sector, with a 67.3% decline in the last 12 months.

With 57% of its stocks (12 out of 21) rated “sell,” the Service sector is struggling this week. DeVry (NYSE:DV[11]), ITT Educational Services (NYSE:ESI[12]), and Sotheby’s (NYSE:BID[13]) are dragging down the sector overall, each earning a low grade of F. Over the last 12 months, DeVry is the worst performer in this sector, with a 52.6% decline.

The Energy Services sector is dragging, with 57% of its stocks (26 out of 46) rated a “sell.” Out of the Energy Services stocks, Tetra Technologies (NYSE:TTI[14]), Key Energy Services (NYSE:KEG[15]), and Weatherford International (NYSE:WFT[16]) are near the bottom with F’s. The worst performer in this sector is Key Energy Services, which saw its price sink 41.8% 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].

Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. HBM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HBM
  3. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  4. MCP: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MCP
  5. DRYS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DRYS
  6. KEX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KEX
  7. DSX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DSX
  8. NOK: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NOK
  9. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  10. ALU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ALU
  11. DV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DV
  12. ESI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ESI
  13. BID: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BID
  14. TTI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TTI
  15. KEG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KEG
  16. WFT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WFT
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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