5 Worst Sectors to Avoid This Week

by Portfolio Grader | March 4, 2014 8:45 am

On the Portfolio Grader[1] database this week, the reit, metals and mining, water utilities, energy services and independent utilities sectors are among the worst.

The reit sector looks weak, with 81% of its stocks (124 out of 154) rated a “sell”. Among reit stocks, Hatteras Financial (HTS[2]), DDR Corp. (DDR[3]) and Health Care REIT, Inc. (HCN[4]) are lingering near the bottom with grades of F. Hatteras Financial is the worst performer in this sector, with a 26.8% decline in the last 12 months.

With 67% of its stocks (61 out of 91) rated “sell,” the metals and mining sector is struggling this week. Out of the metals and mining stocks, Newmont Mining Corporation (NEM[5]), Gold Fields Limited Sponsored ADR (GFI[6]) and Schnitzer Steel Industries, Inc. Class A (SCHN[7]) are near the bottom with F’s. Gold Fields Limited Sponsored ADR is performing worst overall in the sector, with a 75.5% decline over the last 12 months.

The water utilities sector is lagging this week with 67% of its stocks (4 out of 6) rated a “sell”. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR (SBS[8]), SJW Corp. (SJW[9]) and Aqua America, Inc. (WTR[10]) are pushing the sector down with D grades. 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 82.4% in the last 12 months.

The energy services sector is trailing behind others this week, with 60% of its stocks (38 out of 63) rated a “sell”. With an overall grade of F, McDermott International, Inc. (MDR[11]), ION Geophysical Corporation (IO[12]) and Tidewater (TDW[13]) are weighing down the sector. Overall, ION Geophysical Corporation is the poorest performer in this sector. Its share price has dropped 28.1% in the last 12 months.

The independent utilities sector is dragging, with 60% of its stocks (6 out of 10) rated a “sell”. TransAlta Corporation (TAC[14]), Empresa Nacional de Electricidad S.A. Sponsored ADR (EOC[15]) and Calpine Corporation (CPN[16]) are all currently earning F’s. The worst performer in this sector is TransAlta Corporation, which saw its price sink 41.8% 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: https://navelliergrowth.investorplace.com/portfolio-grader/
  2. HTS: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HTS
  3. DDR: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DDR
  4. HCN: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HCN
  5. NEM: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NEM
  6. GFI: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GFI
  7. SCHN: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SCHN
  8. SBS: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SBS
  9. SJW: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJW
  10. WTR: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WTR
  11. MDR: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MDR
  12. IO: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=IO
  13. TDW: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TDW
  14. TAC: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  15. EOC: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EOC
  16. CPN: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPN
  17. here: https://navelliergrowth.investorplace.com/portfolio-grader/

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