5 Worst Sectors to Avoid This Week

by Portfolio Grader | November 6, 2012 12:00 pm

This week, the Energy Services, Energy Services, Semiconductor, Communications Equipment, and Technology Equipment sectors look weak according to Portfolio Grader[1].

The Metals and Mining sector is dragging, with 70% of its stocks (62 out of 88) rated a “sell.” Mechel (NYSE:MTL[2]), Cliffs Natural Resources (NYSE:CLF[3]), and Walter Energy Inc. (NYSE:WLT[4]) are all currently earning F’s. The worst performer in this sector is Cliffs Natural Resources, which saw its price sink 48% in the last 12 months.

With 66% of its stocks (33 out of 50) rated “sell,” the Energy Services sector is struggling this week. Among Energy Services stocks, Baker Hughes (NYSE:BHI[5]), Nabors Industries (NYSE:NBR[6]), and Precision Drilling (NYSE:PDS[7]) are lingering near the bottom with grades of F. Over the last 12 months, Precision Drilling is the worst performer in this sector, with a 33.5% decline.

Semiconductor is lagging this week with 65% of its stocks (49 out of 75) rated a “sell.” Out of the Semiconductor stocks, International Rectifier (NYSE:IRF[8]), Rambus Inc. (NASDAQ:RMBS[9]), and Intersil (NASDAQ:ISIL[10]) are near the bottom with F’s. Overall, International Rectifier is the poorest performer in this sector. Its share price has dropped 35.5% in the last 12 months.

The Communications Equipment sector looks weak, with 65% of its stocks (22 out of 34) rated a “sell.” With an overall grade of F, Acme Packet (NASDAQ:APKT[11]), Finisar (NASDAQ:FNSR[12]), and Alcatel-Lucent (NYSE:ALU[13]) are weighing down the sector. Alcatel-Lucent is performing worst overall in the sector, with a 55.6% decline over the last 12 months.

The Technology Equipment sector is trailing behind others this week, with 64% of its stocks (29 out of 45) rated a “sell.” AVX (NYSE:AVX[14]), Aeroflex (NYSE:ARX[15]), and Coherent Inc. (NASDAQ:COHR[16]) are dragging down the sector overall, each earning a low grade of F. Aeroflex is the worst stock in its sector, with the company’s share price falling 41.2% 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. MTL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MTL
  3. CLF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CLF
  4. WLT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WLT
  5. BHI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BHI
  6. NBR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NBR
  7. PDS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PDS
  8. IRF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=IRF
  9. RMBS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RMBS
  10. ISIL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ISIL
  11. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  12. FNSR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FNSR
  13. ALU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ALU
  14. AVX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AVX
  15. ARX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ARX
  16. COHR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=COHR
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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