5 Worst Sectors to Avoid This Week

by Portfolio Grader | February 26, 2013 12:00 pm

For the week, the worst sectors according to Portfolio Grader[1] are the Metals and Mining, Computer and Personal Electronics, Energy Services, Oil and Gas, and Technology Equipment sectors.

The Metals and Mining sector is dragging, with 78% of its stocks (72 out of 92) rated a “sell”. Cliffs Natural Resources (NYSE:CLF[2]), Walter Energy Inc. (NYSE:WLT[3]), and Thompson Creek Metals (NYSE:TC[4]) are dragging down the sector overall, each earning a low grade of F. Cliffs Natural Resources is the worst performer in this sector, with a 55.7% decline in the last 12 months. This is worse than the S&P 500, which has seen a 10.8% increase over the same period.

With 62% of its stocks (13 out of 21) rated “sell,” the Computer and Personal Electronics sector is struggling this week. With an overall grade of F, Diebold (NYSE:DBD[5]), QLogic (NASDAQ:QLGC[6]), and Hewlett-Packard (NYSE:HPQ[7]) are weighing down the sector. Over the last 12 months, Hewlett-Packard is the worst performer in this sector, with a 23.6% decline.

The Energy Services sector is trailing behind others this week, with 61% of its stocks (33 out of 54) rated a “sell”. Gulfmark Offshore (NYSE:GLF[8]), Key Energy Services (NYSE:KEG[9]), and Nabors Industries (NYSE:NBR[10]) are all currently earning F’s. The worst performer in this sector is Key Energy Services, which saw its price sink 36.6% in the last 12 months.

The Oil and Gas sector is lagging this week with 61% of its stocks (121 out of 199) rated a “sell”. Among Oil and Gas stocks, Enerplus (NYSE:ERF[11]), Swift Energy (NYSE:SFY[12]), and Newfield Exploration (NYSE:NFX[13]) are lingering near the bottom with grades of F. Swift Energy is the worst performer in this sector, with a 50.4% decline in the last 12 months.

The Technology Equipment sector looks weak, with 57% of its stocks (30 out of 53) rated a “sell”. Out of the Technology Equipment stocks, TTM Technologies (NASDAQ:TTMI[14]), FARO Technologies (NASDAQ:FARO[15]), and ScanSource (NASDAQ:SCSC[16]) are near the bottom with F’s.

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].

Source URL: https://investorplace.com/2013/02/5-worst-sectors-to-avoid-this-week-dbd-qlgc-hpq-glf-keg-nbr-erf-sfy-nfx-clf-wlt-tc-ttmi-faro-scsc/

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