5 Worst Sectors to Avoid This Week

by Portfolio Grader | January 14, 2014 11:00 am

5 Worst Sectors to Avoid This Week

This week, the water utilities, construction materials, reit, metals and mining and electric utilities sectors rank lowest on the Portfolio Grader[1] database.

The water utilities sector is trailing behind others this week, with 100% of its stocks (6 out of 6) rated a “sell”. Among water utilities stocks, SJW Corp. (SJW[2]), Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR (SBS[3]) and Aqua America, Inc. (WTR[4]) finished near the bottom. SJW Corp. is currently rated D. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR and Aqua America, Inc. are rated D and D. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR is the worst stock in its sector, with the company’s share price falling 80.7% in the last 12 months. This is worse than the S&P 500, which has seen a 11.4% increase over the same period.

With 90% of its stocks (9 out of 10) rated “sell,” the construction materials sector is struggling this week. Among construction materials stocks, Cementos Pacasmayo SAA Sponsored ADR (CPAC[5]), Headwaters Incorporated (HW[6]) and Martin Marietta Materials, Inc. (MLM[7]) lingered near the bottom. Cementos Pacasmayo SAA Sponsored ADR has a score of D while Headwaters Incorporated and Martin Marietta Materials, Inc. rated D and D.

The reit sector looks weak, with 87% of its stocks (131 out of 150) rated a “sell”. Finishing near the bottom this week are American Capital Mortgage Investment Corp. (MTGE[8]), Hatteras Financial (HTS[9]) and Lexington Realty Trust (LXP[10]) among the reit stocks. American Capital Mortgage Investment Corp. has a score of F while Hatteras Financial and Lexington Realty Trust rated F and F. Over the last 12 months, Hatteras Financial is the worst performer in this sector, with a 34.4% decline.

The metals and mining sector is dragging, with 81% of its stocks (70 out of 86) rated a “sell”. Dwelling near the bottom this week are Harmony Gold Mining Co. Ltd. Sponsored ADR (HMY[11]), Hudbay Minerals Inc. (HBM[12]) and Gold Fields Limited Sponsored ADR (GFI[13]) among the metals and mining stocks. Harmony Gold Mining Co. Ltd. Sponsored ADR has a score of F while Hudbay Minerals Inc. and Gold Fields Limited Sponsored ADR rated F and F. Harmony Gold Mining Co. Ltd. Sponsored ADR is the worst stock in its sector, with the company’s share price falling 77.4% in the last 12 months.

The electric utilities sector is lagging this week with 68% of its stocks (26 out of 38) rated a “sell”. Out of the electric utilities stocks, FirstEnergy (FE[14]), The Southern Company (SO[15]) and CPFL Energia S.A. Sponsored ADR (CPL[16]) finished near the bottom. FirstEnergy has a score of F while The Southern Company and CPFL Energia S.A. Sponsored ADR rated F and F. FirstEnergy is performing worst overall in the sector, with a 23.7% 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. SJW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJW
  3. SBS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SBS
  4. WTR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WTR
  5. CPAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPAC
  6. HW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HW
  7. MLM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MLM
  8. MTGE: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MTGE
  9. HTS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HTS
  10. LXP: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=LXP
  11. HMY: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HMY
  12. HBM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HBM
  13. GFI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GFI
  14. FE: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=FE
  15. SO: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SO
  16. CPL: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPL
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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