5 Worst Sectors to Avoid This Week

by Portfolio Grader | November 27, 2012 4:04 pm

5 Worst Sectors to Avoid This Week

According to the Portfolio Grader[1] database this week, the Independent Utilities, Metals and Mining, Gas Utilities, Communications Equipment, and Semiconductor sectors are at the bottom.

The Independent Utilities sector looks weak, with 70% of its stocks (7 out of 10) rated a “sell”. TransAlta (NYSE:TAC[2]), AES (NYSE:AES[3]), and Dynegy Inc. (NYSE:DYN[4]) are dragging down the sector overall, each earning a low grade of F. TransAlta is performing worst overall in the sector, with a 22.3% decline over the last 12 months. This is worse than the S&P 500, which has seen a 17.9% increase over the same period.

The Metals and Mining sector is trailing behind others this week, with 69% of its stocks (60 out of 87) rated a “sell”. Mechel (NYSE:MTL[5]), Walter Energy Inc. (NYSE:WLT[6]), and Cliffs Natural Resources (NYSE:CLF[7]) are all currently earning F’s. Overall, Walter Energy Inc. is the poorest performer in this sector. Its share price has dropped 50.1% in the last 12 months.

With 69% of its stocks (11 out of 16) rated “sell,” the Gas Utilities sector is struggling this week. Among Gas Utilities stocks, New Jersey Resources (NYSE:NJR[8]) and South Jersey Industries (NYSE:SJI[9]) are struggling with grades of F. Northwest Natural Gas (NYSE:NWN[10]) also has a low grade of D. The worst performer in this sector is New Jersey Resources, which saw its price sink 16.6% in the last 12 months.

The Communications Equipment sector is lagging this week with 68% of its stocks (23 out of 34) rated a “sell”. With an overall grade of F, Acme Packet (NASDAQ:APKT[11]), Adtran (NASDAQ:ADTN[12]), and ViaSat Inc. (NASDAQ:VSAT[13]) are weighing down the sector.

The Semiconductor sector is dragging, with 61% of its stocks (45 out of 74) rated a “sell”. Among Semiconductor stocks, International Rectifier (NYSE:IRF[14]), PMC-Sierra (NASDAQ:PMCS[15]), and Intersil (NASDAQ:ISIL[16]) are lingering near the bottom with grades of F. International Rectifier is performing worst overall in the sector, with a 13.6% decline over 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. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  3. AES: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AES
  4. DYN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DYN
  5. MTL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MTL
  6. WLT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WLT
  7. CLF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CLF
  8. NJR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NJR
  9. SJI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJI
  10. NWN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NWN
  11. APKT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=APKT
  12. ADTN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ADTN
  13. VSAT: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=VSAT
  14. IRF: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=IRF
  15. PMCS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=PMCS
  16. ISIL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ISIL
  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-vsat-mtl-wlt-clf-njr-sji-nwn-irf-pmcs-isil/
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