5 Worst Sectors to Avoid This Week

by Portfolio Grader | September 11, 2012 12:06 pm

For the week, the worst sectors according to Portfolio Grader[1] are the Metals and Mining, Energy Services, Communications Equipment, Semiconductor, and Service sectors.

Metals and Mining is lagging this week with 88% of its stocks (77 out of 88) rated a “sell.” HudBay Minerals (NYSE:HBM[2]), Thompson Creek Metals (NYSE:TC[3]), and Century Aluminum (NASDAQ:CENX[4]) are dragging down the sector overall, each earning a low grade of F. Over the last 12 months, Thompson Creek Metals is the worst performer in this sector, with a 60.2% decline. This is worse than the S&P 500′s 23.8% increase for the same period.

The Energy Services sector is dragging, with 67% of its stocks (33 out of 49) rated a “sell.” Among Energy Services stocks, Tetra Technologies (NYSE:TTI[5]), Key Energy Services (NYSE:KEG[6]), and Weatherford International (NYSE:WFT[7]) are lingering near the bottom with grades of F. Key Energy Services is the worst stock in its sector, with the company’s share price falling 32.3% in the last 12 months. This is worse than the S&P 500′s 23.8% increase for the same period.

With 60% of its stocks (21 out of 35) rated “sell,” the Communications Equipment sector is struggling this week. Out of the Communications Equipment stocks, Nokia (NYSE:NOK[8]), Acme Packet (NASDAQ:APKT[9]), and Alcatel-Lucent (NYSE:ALU[10]) are near the bottom with F’s. Overall, Alcatel-Lucent is the poorest performer in this sector. Its share price has dropped 62.4% in the last 12 months.

The Semiconductor sector is trailing behind others this week, with 59% of its stocks (47 out of 80) rated a “sell.” With an overall grade of F, Advanced Micro Devices (NYSE:AMD[11]), RF Micro Devices (NASDAQ:RFMD[12]), and Cypress Semiconductor (NASDAQ:CY[13]) are weighing down the sector. Advanced Micro Devices is performing worst overall in the sector, with a 46.8% decline over the last 12 months.

The Service sector looks weak, with 57% of its stocks (12 out of 21) rated a “sell.” DeVry (NYSE:DV[14]), ITT Educational Services (NYSE:ESI[15]), and New Oriental Education & Technology Group (NYSE:EDU[16]) are pushing the sector down with F grades. The worst performer in this sector is New Oriental Education & Technology Group, which saw its price sink 54.5% 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. TC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TC
  4. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  5. TTI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TTI
  6. KEG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KEG
  7. WFT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WFT
  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. AMD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AMD
  12. RFMD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RFMD
  13. CY: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CY
  14. DV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DV
  15. ESI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ESI
  16. EDU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EDU
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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