5 Worst Sectors to Avoid This Week

by Portfolio Grader | August 12, 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 lagging this week with 79% of its stocks (126 out of 160) 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. Overall, Hatteras Financial is the poorest performer in this sector. Its share price has dropped 27.9% in the last 12 months.

With 67% of its stocks (4 out of 6) rated “sell,” the water utilities sector is struggling this week. 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. The worst performer in this sector is Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR, which saw its price sink 83.7% in the last 12 months.

The independent power and renewable electricity producers sector is dragging, with 67% of its stocks (6 out of 9) rated a “sell”. Among independent power and renewable electricity producers stocks, TransAlta Corporation (TAC[8]), Empresa Nacional de Electricidad S.A. Sponsored ADR (EOC[9]) and Calpine Corporation (CPN[10]) are lingering near the bottom with grades of F. Over the last 12 months, TransAlta Corporation is the worst performer in this sector, with a 42.7% decline.

The metals and mining sector looks weak, with 66% of its stocks (61 out of 93) rated a “sell”. Newmont Mining Corporation (NEM[11]), Gold Fields Limited Sponsored ADR (GFI[12]) and Schnitzer Steel Industries, Inc. Class A (SCHN[13]) are pushing the sector down with F grades. Gold Fields Limited Sponsored ADR is the worst performer in this sector, with a 72.5% decline in the last 12 months.

The energy services sector is trailing behind others this week, with 61% of its stocks (39 out of 64) rated a “sell”. Out of the energy services stocks, McDermott International, Inc. (MDR[14]), ION Geophysical Corporation (IO[15]) and Tidewater (TDW[16]) are near the bottom with F’s. ION Geophysical Corporation is performing worst overall in the sector, with a 37.5% decline over 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. SBS: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SBS
  6. SJW: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SJW
  7. WTR: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=WTR
  8. TAC: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TAC
  9. EOC: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EOC
  10. CPN: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=CPN
  11. NEM: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NEM
  12. GFI: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GFI
  13. SCHN: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=SCHN
  14. MDR: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MDR
  15. IO: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=IO
  16. TDW: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TDW
  17. here: https://navelliergrowth.investorplace.com/portfolio-grader/

Source URL: https://investorplace.com/2014/08/5-worst-sectors-to-avoid-this-week-mdr-io-tdw-8/