5 Worst Sectors to Avoid This Week

by Portfolio Grader | January 21, 2014 9:00 am

For the week, the worst sectors according to Portfolio Grader[1] are the water utilities, reit, metals and mining, electric utilities and construction materials sectors.

The water utilities sector is lagging this week with 100% of its stocks (6 out of 6) rated a “sell”. SJW Corp. (SJW[2]), Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR (SBS[3]) and Aqua America, Inc. (WTR[4]) are pushing the sector down with D grades. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR is the worst performer in this sector, with an 80.9% decline in the last 12 months. This is worse than the S&P 500, which has seen a 9.8% increase over the same period.

The reit sector is dragging, with 87% of its stocks (131 out of 151) rated a “sell”. American Capital Mortgage Investment Corp. (MTGE[5]), Hatteras Financial (HTS[6]) and Apollo Residential Mortgage, Inc. (AMTG[7]) are all currently earning F’s. Over the last 12 months, Hatteras Financial is the worst performer in this sector, with a 35% decline.

The metals and mining sector looks weak, with 77% of its stocks (68 out of 88) rated a “sell”. Among metals and mining stocks, Harmony Gold Mining Co. Ltd. Sponsored ADR (HMY[8]), Hudbay Minerals Inc. (HBM[9]) and Gold Fields Limited Sponsored ADR (GFI[10]) are lingering near the bottom with grades of F. The worst performer in this sector is Gold Fields Limited Sponsored ADR, which saw its price sink 78% in the last 12 months.

The electric utilities sector is trailing behind others this week, with 76% of its stocks (29 out of 38) rated a “sell”. FirstEnergy (FE[11]), Centrais Eletricas Brasileiras S.A. – Eletrobras Sponsored ADR (EBR[12]) and The Southern Company (SO[13]) are dragging down the sector overall, each earning a low grade of F. FirstEnergy is the worst stock in its sector, with the company’s share price falling 23.5% in the last 12 months.

With 70% of its stocks (7 out of 10) rated “sell,” the construction materials sector is struggling this week. With an overall grade of D, Headwaters Incorporated (HW[14]), Martin Marietta Materials, Inc. (MLM[15]) and Cementos Pacasmayo SAA Sponsored ADR (CPAC[16]) are weighing down the sector.

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/2014/01/5-worst-sectors-to-avoid-this-week-sjw-sbs-wtr-fe-ebr-so-mtge-hts-amtg-hw-mlm-cpac-hmy-hbm-gfi/

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