5 Worst Sectors to Avoid This Week

by Portfolio Grader | July 29, 2014 9:45 am

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

With 79% of its stocks (125 out of 159) rated “sell,” the reit sector is struggling this week. 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. Over the last 12 months, Hatteras Financial is the worst performer in this sector, with a 27.4% decline.

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 performing worst overall in the sector, with an 81.3% decline over the last 12 months.

The independent power and renewable electricity producers sector is trailing behind others this week, with 67% of its stocks (6 out of 9) rated a “sell”. 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. TransAlta Corporation is the worst performer in this sector, with a 40.4% decline in the last 12 months.

The metals and mining sector is dragging, with 66% of its stocks (61 out of 92) rated a “sell”. Out of the 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 near the bottom with F’s. Overall, Gold Fields Limited Sponsored ADR is the poorest performer in this sector. Its share price has dropped 73.1% in the last 12 months.

The energy services sector looks weak, 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. ION Geophysical Corporation is the worst stock in its sector, with the company’s share price falling 30% 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].

Source URL: https://investorplace.com/2014/07/5-worst-sectors-to-avoid-this-week-mdr-io-tdw-6/

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