5 Worst Sectors to Avoid This Week

by Portfolio Grader | October 9, 2012 12:45 pm

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

The Semiconductor sector looks weak, with 78% of its stocks (61 out of 78) rated a “sell.” Among Semiconductor stocks, International Rectifier (NYSE:IRF[2]), Intersil (NASDAQ:ISIL[3]), and Advanced Micro Devices (NYSE:AMD[4]) are lingering near the bottom with grades of F. Intersil is performing worst overall in the sector, with a 34.7% decline over the last 12 months. This is worse than the Nasdaq’s 25.5% increase over the same period.

The Metals and Mining sector is dragging, with 72% of its stocks (64 out of 89) rated a “sell.” Mechel (NYSE:MTL[5]), Century Aluminum (NASDAQ:CENX[6]), and Companhia Siderurgica Naciona (NYSE:SID[7]) are all currently earning F’s. Overall, Mechel is the poorest performer in this sector. Its share price has dropped 30.1% in the last 12 months.

The Communications Equipment sector is trailing behind others this week, with 71% of its stocks (24 out of 34) rated a “sell.” Acme Packet (NASDAQ:APKT[8]), Nokia (NYSE:NOK[9]), and Alcatel-Lucent (NYSE:ALU[10]) are dragging down the sector overall, each earning a low grade of F. Alcatel-Lucent is the worst performer in this sector, with a 61% decline in the last 12 months.

Marine is lagging this week with 63% of its stocks (5 out of 8) rated a “sell.” DryShips (NASDAQ:DRYS[11]), Diana Shipping (NYSE:DSX[12]), and Navios Maritime Partners (NYSE:NMM[13]) are pushing the sector down with D grades. Over the last 12 months, Diana Shipping is the worst performer in this sector, with a 5.8% decline.

With 63% of its stocks (5 out of 8) rated “sell,” the Shipping and Logistics sector is struggling this week. Among Shipping and Logistics stocks, UTi Worldwide (NASDAQ:UTIW[14]) andHub Group (NASDAQ:HUBG[15]) are struggling with grades of D. Expeditors International of Washington (NASDAQ:EXPD[16]) also has a low grade of F. Expeditors International of Washington declined 17.4%, making it the worst performer in the sector over the last year.

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. MTL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MTL
  6. CENX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CENX
  7. SID: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SID
  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. ALU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ALU
  11. DRYS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DRYS
  12. DSX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DSX
  13. NMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NMM
  14. UTIW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=UTIW
  15. HUBG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HUBG
  16. EXPD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EXPD
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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