For the week, the worst sectors according to Portfolio Grader are the reit, metals and mining, construction materials, independent utilities and electric utilities sectors.
With 85% of its stocks (127 out of 150) rated “sell,” the reit sector is struggling this week. With an overall grade of F, American Capital Mortgage Investment Corp. (MTGE), Hatteras Financial (HTS) and Lexington Realty Trust (LXP) are weighing down the sector. Hatteras Financial is performing worst overall in the sector, with a 36.6% decline over the last 12 months. This is worse than the S&P 500, which has seen a 12.1% increase over the same period.
The metals and mining sector is dragging, with 81% of its stocks (70 out of 86) rated a “sell”. Harmony Gold Mining Co. Ltd. Sponsored ADR (HMY), Barrick Gold Corporation (ABX) and Hudbay Minerals Inc. (HBM) are dragging down the sector overall, each earning a low grade of F. Harmony Gold Mining Co. Ltd. Sponsored ADR is performing worst overall in the sector, with a 77.5% decline over the last 12 months.
The construction materials sector is trailing behind others this week, with 80% of its stocks (8 out of 10) rated a “sell”. Among construction materials stocks, Martin Marietta Materials, Inc. (MLM), Cemex SAB de CV Sponsored ADR (CX) and Headwaters Incorporated (HW) are lingering near the bottom with grades of D.
The independent utilities sector looks weak, with 80% of its stocks (8 out of 10) rated a “sell”. Brookfield Renewable Energy Partners LP (BEP) and Calpine Corporation (CPN) are dragging down the sector overall, each earning a high score of D. TransAlta Corporation (TAC) currently ranks F. The worst performer in this sector is TransAlta Corporation, which saw its price sink 35.5% in the last 12 months.
The electric utilities sector is lagging this week with 76% of its stocks (29 out of 38) rated a “sell”. FirstEnergy (FE), The Southern Company (SO) and Pepco Holdings, Inc. (POM) are all currently earning F’s. Overall, FirstEnergy is the poorest performer in this sector. Its share price has dropped 24.6% in the last 12 months.
Louis Navellier’s proprietary Portfolio Grader 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.
