5 Worst Sectors to Avoid This Week

by Portfolio Grader | October 23, 2012 12:00 pm

5 Worst Sectors to Avoid This Week

This week, the Semiconductor, Communications Equipment, Metals and Mining, Marine, and Technology Equipment sectors rank lowest on the Portfolio Grader[1] database.

The Semiconductor sector looks weak, with 71% of its stocks (54 out of 76) rated a “sell.” International Rectifier (NYSE:IRF[2]), Intersil (NASDAQ:ISIL[3]), and RF Micro Devices (NASDAQ:RFMD[4]) are all currently earning F’s. International Rectifier is the worst stock in its sector, with the company’s share price falling 31.9% in the last 12 months. This is worse than the S&P 500, which has seen a 14.3% increase over the same period.

The Communications Equipment sector is trailing behind others this week, with 65% of its stocks (22 out of 34) rated a “sell.” With an overall grade of F, Acme Packet (NASDAQ:APKT[5]), Alcatel-Lucent (NYSE:ALU[6]), and Nokia (NYSE:NOK[7]) are weighing down the sector. Nokia is performing worst overall in the sector, with a 60% decline over the last 12 months.

Metals and Mining is lagging this week with 64% of its stocks (57 out of 89) rated a “sell.” Mechel (NYSE:MTL[8]), Walter Energy Inc. (NYSE:WLT[9]), and Molycorp (NYSE:MCP[10]) are dragging down the sector overall, each earning a low grade of F. Over the last 12 months, Molycorp is the worst performer in this sector, with a 72% decline.

The Marine sector is dragging, with 63% of its stocks (5 out of 8) rated a “sell.” Diana Shipping (NYSE:DSX[11]), DryShips (NASDAQ:DRYS[12]), and Matson Inc. (NYSE:MATX[13]) are pushing the sector down with D grades. Overall, Matson Inc. is the poorest performer in this sector. Its share price has dropped 27.7% in the last 12 months.

With 60% of its stocks (28 out of 47) rated “sell,” the Technology Equipment sector is struggling this week. Among Technology Equipment stocks, AVX (NYSE:AVX[14]), Avnet (NYSE:AVT[15]), and TTM Technologies (NASDAQ:TTMI[16]) are lingering near the bottom with grades of F. The worst performer in this sector is AVX, which saw its price sink 27.9% 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. IRF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=IRF
  3. ISIL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ISIL
  4. RFMD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RFMD
  5. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  6. ALU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ALU
  7. NOK: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NOK
  8. MTL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MTL
  9. WLT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WLT
  10. MCP: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MCP
  11. DSX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DSX
  12. DRYS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DRYS
  13. MATX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MATX
  14. AVX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AVX
  15. AVT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AVT
  16. TTMI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TTMI
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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