5 Worst Sectors to Avoid This Week

by Portfolio Grader | September 18, 2012 1:01 pm

On the Portfolio Grader[1] database this week, the Metals and Mining, Semiconductor, Communications Equipment, Energy Services, and Service sectors are among the worst.

The Metals and Mining sector is dragging, with 84% of its stocks (76 out of 91) rated a “sell.” Thompson Creek Metals (NYSE:TC[2]), Century Aluminum (NASDAQ:CENX[3]), and Molycorp (NYSE:MCP[4]) are dragging down the sector overall, each earning a low grade of F. Overall, Molycorp is the poorest performer in this sector. Its share price has dropped 75% in the last 12 months. This is worse than the S&P 500′s 20.2% increase for the same period.

With 65% of its stocks (54 out of 83) rated “sell,” the Semiconductor sector is struggling this week. With an overall grade of F, Intersil (NASDAQ:ISIL[5]), Advanced Micro Devices (NYSE:AMD[6]), and RF Micro Devices (NASDAQ:RFMD[7]) are weighing down the sector. Over the last 12 months, Advanced Micro Devices is the worst performer in this sector, with a 44.3% decline.

The Communications Equipment sector is trailing behind others this week, with 60% of its stocks (21 out of 35) rated a “sell.” Out of the Communications Equipment stocks, Nokia (NYSE:NOK[8]), Acme Packet (NASDAQ:APKT[9]), and Research In Motion (NASDAQ:RIMM[10]) are near the bottom with F’s. The worst performer in this sector is Research in Motion, which saw its price sink 69.7% in the last 12 months.

The Energy Services sector looks weak, with 59% of its stocks (30 out of 51) rated a “sell.” Tetra Technologies (NYSE:TTI[11]), Transocean (NYSE:RIG[12]), and Weatherford International (NYSE:WFT[13]) are all currently earning F’s. Tetra Technologies is performing worst overall in the sector, with a 32.3% decline over the last 12 months.

Service is lagging this week with 57% of its stocks (12 out of 21) rated a “sell.” Among Service stocks, DeVry (NYSE:DV[14]), ITT Educational Services (NYSE:ESI[15]), and New Oriental Education & Technology Group (NYSE:EDU[16]) are lingering near the bottom with grades of F. New Oriental Education & Technology Group is the worst performer in this sector, with a 56.4% decline 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. TC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TC
  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. ISIL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ISIL
  6. AMD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AMD
  7. RFMD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RFMD
  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. RIMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RIMM
  11. TTI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TTI
  12. RIG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RIG
  13. WFT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WFT
  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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