For the week, the worst sectors according to Portfolio Grader are the reit, metals and mining, construction materials, independent utilities and electric utilities sectors.
The reit sector looks weak, with 85% of its stocks (127 out of 150) rated a “sell”. Out of the reit stocks, American Capital Mortgage Investment Corp. (MTGE), Hatteras Financial (HTS) and Lexington Realty Trust (LXP) are near the bottom with F’s. Over the last 12 months, Hatteras Financial is the worst performer in this sector, with a 37.3% decline. This is worse than the S&P 500, which has seen a 14.9% increase over the same period.
The metals and mining sector is trailing behind others this week, with 81% of its stocks (70 out of 86) rated a “sell”. Harmony Gold Mining Co. Ltd. Sponsored ADR (HMY), Barrick Gold Corporation (ABX) and Hudbay Minerals Inc. (HBM) are pushing the sector down with F grades. Harmony Gold Mining Co. Ltd. Sponsored ADR is the worst stock in its sector, with the company’s share price falling 78.9% in the last 12 months.
The construction materials sector is dragging, with 80% of its stocks (8 out of 10) rated a “sell”. With an overall grade of D, Martin Marietta Materials, Inc. (MLM), Cemex SAB de CV Sponsored ADR (CX) and Headwaters Incorporated (HW) are weighing down the sector.
With 80% of its stocks (8 out of 10) rated “sell,” the independent utilities sector is struggling this week. Among independent utilities stocks, Brookfield Renewable Energy Partners LP (BEP) and Calpine Corporation (CPN) are struggling with grades of D. TransAlta Corporation (TAC) also has a low grade of F. Overall, TransAlta Corporation is the poorest performer in this sector. Its share price has dropped 35.5% in the last 12 months.
The electric utilities sector is lagging this week with 76% of its stocks (29 out of 38) rated a “sell”. FirstEnergy (FE), The Southern Company (SO) and Pepco Holdings, Inc. (POM) are dragging down the sector overall, each earning a low grade of F. FirstEnergy is performing worst overall in the sector, with a 24.5% decline over the last 12 months.
Louis Navellier’s proprietary Portfolio Grader 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.