5 Worst Sectors to Avoid This Week

by Portfolio Grader | May 13, 2014 9:45 am

This week, the reit, metals and mining, water utilities, independent power and renewable electricity producers and energy services sectors rank lowest on the Portfolio Grader[1] database.

The reit sector is lagging this week with 81% of its stocks (127 out of 157) rated a “sell”. With an overall grade of F, Hatteras Financial (HTS[2]), DDR Corp. (DDR[3]) and Health Care REIT, Inc. (HCN[4]) are weighing down the sector. The worst performer in this sector is Hatteras Financial, which saw its price sink 27.1% 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. Among 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 lingering near the bottom with grades of F. Gold Fields Limited Sponsored ADR is the worst stock in its sector, with the company’s share price falling 73.5% in the last 12 months.

The water utilities sector is dragging, with 67% of its stocks (4 out of 6) rated a “sell”. Out of the water utilities stocks, 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 near the bottom with D’s. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR is performing worst overall in the sector, with an 81.3% decline over the last 12 months.

The independent power and renewable electricity producers sector looks weak, with 67% of its stocks (6 out of 9) rated a “sell”. TransAlta Corporation (TAC[11]), Empresa Nacional de Electricidad S.A. Sponsored ADR (EOC[12]) and Calpine Corporation (CPN[13]) are dragging down the sector overall, each earning a low grade of F. The worst performer in this sector is TransAlta Corporation, which saw its price sink 39.3% 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”. McDermott International, Inc. (MDR[14]), ION Geophysical Corporation (IO[15]) and Tidewater (TDW[16]) are all currently earning F’s. McDermott International, Inc. is the worst performer in this sector, with a 28.5% decline 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. HTS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HTS
  3. DDR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=DDR
  4. HCN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=HCN
  5. NEM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NEM
  6. GFI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GFI
  7. SCHN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SCHN
  8. SBS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SBS
  9. SJW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJW
  10. WTR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WTR
  11. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  12. EOC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EOC
  13. CPN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPN
  14. MDR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MDR
  15. IO: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=IO
  16. TDW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TDW
  17. here: http://navelliergrowth.investorplace.com/portfolio-grader/

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