5 Worst Sectors to Avoid This Week

by Portfolio Grader | October 2, 2012 1:45 pm

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

The Semiconductor sector looks weak, with 73% of its stocks (58 out of 79) rated a “sell.” International Rectifier (NYSE:IRF[2]), Intersil (NASDAQ:ISIL[3]), and Advanced Micro Devices (NYSE:AMD[4]) are all currently earning F’s. The worst performer in this sector is Advanced Micro Devices, which saw its price sink 35.4% in the last 12 months. This is worse than the S&P 500′s 27.7% increase over the same period.

With 72% of its stocks (63 out of 88) rated “sell,” the Metals and Mining sector is struggling this week. Century Aluminum (NASDAQ:CENX[5]), Companhia Siderurgica Naciona (NYSE:SID[6]), and Walter Energy Inc. (NYSE:WLT[7]) are pushing the sector down with F grades. Overall, Walter Energy Inc. is the poorest performer in this sector. Its share price has dropped 46.1% in the last 12 months.

The Communications Equipment sector is trailing behind others this week, with 63% of its stocks (22 out of 35) rated a “sell.” Acme Packet (NASDAQ:APKT[8]), Nokia (NYSE:NOK[9]), and Research In Motion (NASDAQ:RIMM[10]) are dragging down the sector overall, each earning a low grade of F. Research In Motion is the worst stock in its sector, with the company’s share price falling 61.3% in the last 12 months.

The Marine sector is dragging, with 63% of its stocks (5 out of 8) rated a “sell.” With a grade of D, Matson Inc. (NYSE:MATX[11]) andDryShips (NASDAQ:DRYS[12]) are weighing down the sector. Diana Shipping (NYSE:DSX[13]) also ranks a low F. Over the last 12 months, Diana Shipping is the worst performer in this sector, with a 10.5% decline.

Service is lagging this week with 62% of its stocks (13 out of 21) rated a “sell.” Out of the Service stocks, DeVry (NYSE:DV[14]), ITT Educational Services (NYSE:ESI[15]), and Sotheby’s (NYSE:BID[16]) are near the bottom with F’s. ITT Educational Services is performing worst overall in the sector, with a 44.8% decline over 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. AMD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AMD
  5. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  6. SID: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SID
  7. WLT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WLT
  8. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  9. NOK: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NOK
  10. RIMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RIMM
  11. MATX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MATX
  12. DRYS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DRYS
  13. DSX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DSX
  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. BID: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BID
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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