5 Worst Sectors to Avoid This Week

by Portfolio Grader | November 20, 2012 12:08 pm

5 Worst Sectors to Avoid This Week

For the week, the worst sectors according to Portfolio Grader[1] are the Gas Utilities, Metals and Mining, Independent Utilities, Shipping and Logistics, and Communications Equipment sectors.

The Gas Utilities sector is lagging this week with 81% of its stocks (13 out of 16) rated a “sell”. At the bottom of the Gas Utilities stocks, New Jersey Resources (NYSE:NJR[2]) and South Jersey Industries (NYSE:SJI[3]) currently have F’s. WGL Holdings (NYSE:WGL[4]) also has a weak D. Overall, New Jersey Resources is the poorest performer in this sector. Its share price has dropped 16.8% in the last 12 months. This is worse than the S&P 500, which has seen a 14% increase over the same period.

With 70% of its stocks (61 out of 87) rated “sell,” the Metals and Mining sector is struggling this week. Cliffs Natural Resources (NYSE:CLF[5]), Molycorp (NYSE:MCP[6]), and Companhia Siderurgica Naciona (NYSE:SID[7]) are dragging down the sector overall, each earning a low grade of F. Overall, Molycorp is the poorest performer in this sector. Its share price has dropped 76.6% in the last 12 months.

The Independent Utilities sector looks weak, with 70% of its stocks (7 out of 10) rated a “sell”. With an overall grade of F, TransAlta (NYSE:TAC[8]), AES (NYSE:AES[9]), and Dynegy Inc. (NYSE:DYN[10]) are weighing down the sector. TransAlta is the worst performer in this sector, with a 26.7% decline in the last 12 months.

The Shipping and Logistics sector is trailing behind others this week, with 63% of its stocks (5 out of 8) rated a “sell”. With a grade of D, UTi Worldwide (NASDAQ:UTIW[11]) andForward Air (NASDAQ:FWRD[12]) are weighing down the sector. Expeditors International of Washington (NASDAQ:EXPD[13]) also ranks a low F.

The Communications Equipment sector is dragging, with 63% of its stocks (20 out of 32) rated a “sell”. Acme Packet (NASDAQ:APKT[14]), Adtran (NASDAQ:ADTN[15]), and Alcatel-Lucent (NYSE:ALU[16]) are pushing the sector down with F grades. Alcatel-Lucent is the worst stock in its sector, with the company’s share price falling 46.8% 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. NJR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NJR
  3. SJI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJI
  4. WGL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WGL
  5. CLF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CLF
  6. MCP: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MCP
  7. SID: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SID
  8. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  9. AES: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AES
  10. DYN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DYN
  11. UTIW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=UTIW
  12. FWRD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FWRD
  13. EXPD: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EXPD
  14. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  15. ADTN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ADTN
  16. ALU: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ALU
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

Source URL: http://investorplace.com/2012/11/5-worst-sectors-to-avoid-this-week-tac-aes-dyn-apkt-adtn-alu-clf-mcp-sid-njr-sji-wgl-expd-utiw-fwrd/
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