5 Worst Sectors to Avoid This Week

by Portfolio Grader | December 31, 2013 8:15 am

For the week, the worst sectors according to Portfolio Grader[1] 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[2]), Hatteras Financial (HTS[3]) and Lexington Realty Trust (LXP[4]) 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[5]), Barrick Gold Corporation (ABX[6]) and Hudbay Minerals Inc. (HBM[7]) 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[8]), Cemex SAB de CV Sponsored ADR (CX[9]) and Headwaters Incorporated (HW[10]) 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[11]) and Calpine Corporation (CPN[12]) are struggling with grades of D. TransAlta Corporation (TAC[13]) 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[14]), The Southern Company (SO[15]) and Pepco Holdings, Inc. (POM[16]) 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[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/2013/12/5-worst-sectors-to-avoid-this-week-tac-bep-cpn-fe-so-pom-mlm-cx-hw-mtge-hts-lxp-hmy-abx-hbm/

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