Investors are stocking up on commodity stocks amid high inflation, with the prospect of higher prices leading to higher profits. But not all commodity stocks are created equal. A lot of industrial commodities such as iron, aluminum and steel are seeing weak demand — despite inflation pushing up prices.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve got seven commodity stocks to sell.
Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”
Alcoa Inc. (NYSE:AA) produces and manages aluminum, fabricated aluminum and alumina. AA finds a spot on this list after posting a loss of 35% year-to-date.
ArcelorMittal (NYSE:MT) is a global steel producer that shipped approximately 85 million tons of steel in 2010. Despite such huge production, MT stock has dipped almost 50% year-to-date.
Freeport-McMoRan Copper & Gold (NYSE:FCX) is involved with copper, gold and molybdenum mining. Year-to-date, FCX stock has lost 33%, compared to gains by the broader markets.
Ivanhoe Mines Ltd. (NYSE:IVN) is based in British Columbia and is an international mineral explorer and developer. Since the start of 2011, IVN stock has posted an uninspiring loss of 7%.
Kinross Gold Corp. (NYSE:KGC) explores, acquires, develops and operates gold properties in the U.S. Since Jan. 1, KGC stock has lost 29% and has left shareholders questioning their initial purchase.
POSCO (NYSE:PKX) is based in South Korea and is a producer of integrated steel. PKX is down 19% since the start of 2011.
Vale (NYSE:VALE) is a metal and mining company headquartered in Brazil. VALE stock is down 30% year-to-date, compared to a gain of almost 5% for the Dow Jones.
Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.
