5 Worst Sectors to Avoid This Week

by Portfolio Grader | February 11, 2014 7:15 am

5 Worst Sectors to Avoid This Week

This week, the independent utilities, metals and mining, reit, construction materials and energy services sectors look weak according to Portfolio Grader[1].

The independent utilities sector is dragging, with 80% of its stocks (8 out of 10) rated a “sell”. TransAlta Corporation (TAC[2]) and Empresa Nacional de Electricidad S.A. Sponsored ADR (EOC[3]) are dragging down the sector overall, each earning a low grade of F. Calpine Corporation (CPN[4]) currently ranks D. Over the last 12 months, TransAlta Corporation is the worst performer in this sector, with a 33% decline.

With 76% of its stocks (66 out of 87) rated “sell,” the metals and mining sector is struggling this week. Harmony Gold Mining Co. Ltd. Sponsored ADR (HMY[5]), Allegheny Technologies Incorporated (ATI[6]) and Hudbay Minerals Inc. (HBM[7]) are dragging down the sector overall, each earning a low grade of F. Harmony Gold Mining Co. Ltd. Sponsored ADR is the worst stock in its sector, with the company’s share price falling 75.6% in the last 12 months.

The reit sector looks weak, with 75% of its stocks (114 out of 152) rated a “sell”. With an overall grade of F, Hatteras Financial (HTS[8]), Apollo Residential Mortgage, Inc. (AMTG[9]) and CYS Investments, Inc. (CYS[10]) are weighing down the sector. The worst performer in this sector is CYS Investments, Inc., which saw its price sink 36.2% in the last 12 months.

The construction materials sector is lagging this week with 70% of its stocks (7 out of 10) rated a “sell”. Out of the construction materials stocks, Martin Marietta Materials, Inc. (MLM[11]) and Cemex SAB de CV Sponsored ADR (CX[12]) are near the bottom of the sector with D’s. Cementos Pacasmayo SAA Sponsored ADR (CPAC[13]) also ranks a weak F.

The energy services sector is trailing behind others this week, with 56% of its stocks (34 out of 61) rated a “sell”. McDermott International, Inc. (MDR[14]), CGG Sponsored ADR (CGG[15]) and Diamond Offshore Drilling, Inc. (DO[16]) are all currently earning F’s. Overall, CGG Sponsored ADR is the poorest performer in this sector. Its share price has dropped 46.3% in 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. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  3. EOC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EOC
  4. CPN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPN
  5. HMY: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HMY
  6. ATI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=ATI
  7. HBM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HBM
  8. HTS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HTS
  9. AMTG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AMTG
  10. CYS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CYS
  11. MLM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MLM
  12. CX: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CX
  13. CPAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPAC
  14. MDR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MDR
  15. CGG: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CGG
  16. DO: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DO
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

Source URL: http://investorplace.com/2014/02/5-worst-sectors-to-avoid-this-week-tac-eoc-cpn-cpac-mlm-cx-hmy-ati-hbm-mdr-cgg-do-hts-amtg-cys/
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