5 Worst Sectors to Avoid This Week

by Portfolio Grader | June 3, 2014 9:45 am

This week, the energy services, water utilities, independent power and renewable electricity producers, metals and mining and energy services sectors look weak according to Portfolio Grader[1].

The reit sector is dragging, with 80% of its stocks (127 out of 159) 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. Hatteras Financial is the worst performer in this sector, with a 24.7% decline in 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[5]), SJW Corp. (SJW[6]) and Aqua America, Inc. (WTR[7]) are all currently earning D’s. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR is the worst performer in this sector, with an 81.4% decline in the last 12 months.

With 67% of its stocks (6 out of 9) rated “sell,” the independent power and renewable electricity producers sector is struggling this week. TransAlta Corporation (TAC[8]), Empresa Nacional de Electricidad S.A. Sponsored ADR (EOC[9]) and Calpine Corporation (CPN[10]) are pushing the sector down with F grades. The worst performer in this sector is TransAlta Corporation, which saw its price sink 39% in the last 12 months.

The metals and mining sector looks weak, with 66% of its stocks (61 out of 92) rated a “sell”. Among metals and mining stocks, Newmont Mining Corporation (NEM[11]), Gold Fields Limited Sponsored ADR (GFI[12]) and Schnitzer Steel Industries, Inc. Class A (SCHN[13]) are lingering near the bottom with grades of F. Overall, Gold Fields Limited Sponsored ADR is the poorest performer in this sector. Its share price has dropped 76.5% 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 dragging down the sector overall, each earning a low grade of F. Over the last 12 months, ION Geophysical Corporation is the worst performer in this sector, with a 26.3% decline.

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. SBS: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SBS
  6. SJW: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJW
  7. WTR: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WTR
  8. TAC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  9. EOC: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EOC
  10. CPN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPN
  11. NEM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NEM
  12. GFI: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GFI
  13. SCHN: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SCHN
  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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