5 Worst Sectors to Avoid This Week

Independent Utilities, Energy Services, Marine, Metals and Mining, and Service have most sells

   
5 Worst Sectors to Avoid This Week

This week, the Metals and Mining, Independent Utilities, Service, Energy Services, and Marine sectors rank lowest on the Portfolio Grader database.

The Metals and Mining sector looks weak, with 86% of its stocks (75 out of 87) rated a “sell.” HudBay Minerals (NYSE:HBM), Aluminum Corp. of China (NYSE:ACH), and Alcoa (NYSE:AA) are dragging down the sector overall, each earning a low grade of F. The worst performer in this sector is Aluminum Corp. of China, which saw its price sink 25.9% in the last 12 months. This is worse than the S&P 500, which has seen a 9.9% increase over the same period.

With 60% of its stocks (6 out of 10) rated “sell,” the Independent Utilities sector is struggling this week. At the bottom of the Independent Utilities stocks, TransAlta (NYSE:TAC) and Dynegy Inc. (NYSE:DYN) currently have F’s. NRG Energy (NYSE:NRG) also has a weak D. Overall, Dynegy Inc. is the poorest performer in this sector. Its share price has dropped 397.3% in the last 12 months.

The Service sector is trailing behind others this week, with 59% of its stocks (13 out of 22) rated a “sell.” Education Management Corp. (NASDAQ:EDMC), DeVry (NYSE:DV), and ITT Educational Services (NYSE:ESI) are all currently earning F’s. The worst performer in this sector is Education Management Corp., which saw its price sink 84.1% in the last 12 months.

The Energy Services sector is dragging, with 57% of its stocks (29 out of 51) rated a “sell.” Out of the Energy Services stocks, Tetra Technologies (NYSE:TTI), Key Energy Services (NYSE:KEG), and Pioneer Energy Services Corp (NYSE:PES) are near the bottom with F’s. Key Energy Services is the worst performer in this sector, with a 50.5% decline in the last 12 months.

Marine is lagging this week with 56% of its stocks (5 out of 9) rated a “sell.” Among Marine stocks, DryShips (NASDAQ:DRYS), Diana Shipping (NYSE:DSX), and Navios Maritime Partners (NYSE:NMM) are lingering near the bottom with grades of D. Over the last 12 months, DryShips is the worst performer in this sector, with a 20.7% decline.

Louis Navellier’s proprietary Portfolio Grader 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.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/5-worst-sectors-to-avoid-this-week-tac-dyn-nrg/.

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