5 Worst Sectors to Avoid This Week

by Portfolio Grader | October 30, 2012 2:15 pm

This week, the Metals and Mining, Independent Utilities, Service, Energy Services, and Marine sectors rank lowest on the Portfolio Grader[1] database.

The Metals and Mining sector looks weak, with 86% of its stocks (75 out of 87) rated a “sell.” HudBay Minerals (NYSE:HBM[2]), Aluminum Corp. of China (NYSE:ACH[3]), and Alcoa (NYSE:AA[4]) 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[5]) and Dynegy Inc. (NYSE:DYN[6]) currently have F’s. NRG Energy (NYSE:NRG[7]) 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[8]), DeVry (NYSE:DV[9]), and ITT Educational Services (NYSE:ESI[10]) 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[11]), Key Energy Services (NYSE:KEG[12]), and Pioneer Energy Services Corp (NYSE:PES[13]) 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[14]), Diana Shipping (NYSE:DSX[15]), and Navios Maritime Partners (NYSE:NMM[16]) 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[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. HBM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HBM
  3. ACH: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ACH
  4. AA: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AA
  5. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  6. DYN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DYN
  7. NRG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NRG
  8. EDMC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EDMC
  9. DV: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DV
  10. ESI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ESI
  11. TTI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TTI
  12. KEG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=KEG
  13. PES: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PES
  14. DRYS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DRYS
  15. DSX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DSX
  16. NMM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NMM
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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