Tuesday, November 26, 2013

5 Worst Sectors to Avoid This Week

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According to the Portfolio Grader database this week, the metals and mining, energy services, computer and personal electronics, oil and gas, and marine sectors are at the bottom.

With 78% of its stocks (74 out of 95) rated “sell,” the metals and mining sector is struggling this week. Finishing near the bottom this week are Cliffs Natural Resources (), Walter Energy (), and Thompson Creek Metals Company Inc. () among the metals and mining stocks. Cliffs Natural Resources has a score of F while Walter Energy and Thompson Creek Metals Company Inc. rated F and F. Walter Energy is the worst stock in its sector, with the company’s share price falling 74.7% in the last 12 months. This is worse than the S&P 500, which has seen a 16.6% increase over the same period.

The energy services sector is dragging, with 61% of its stocks (34 out of 56) rated a “sell”. Among energy services stocks, GulfMark Offshore, Inc. Class A (), Key Energy Services, Inc. (), and Nabors Industries () finished near the bottom. GulfMark Offshore, Inc. Class A is currently rated F. Key Energy Services, Inc. and Nabors Industries are rated F and F. The worst performer in this sector is Key Energy Services, Inc., which saw its price sink 37.8% in the last 12 months.

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The computer and personal electronics sector looks weak, with 60% of its stocks (12 out of 20) rated a “sell”. Out of the computer and personal electronics stocks, Diebold, Incorporated (), QLogic Corporation (), and Hewlett-Packard Company () finished near the bottom. Diebold, Incorporated has a score of F while QLogic Corporation and Hewlett-Packard Company rated F and F.

The oil and gas sector is lagging this week with 58% of its stocks (123 out of 213) rated a “sell”. Dwelling near the bottom this week are Enerplus Corporation (), Swift Energy Company (), and Newfield Exploration Company () among the oil and gas stocks. Enerplus Corporation has a score of F while Swift Energy Company and Newfield Exploration Company rated F and F. Overall, Swift Energy Company is the poorest performer in this sector. Its share price has dropped 51.2% in the last 12 months.

The marine sector is trailing behind others this week, with 57% of its stocks (4 out of 7) rated a “sell”. Diana Shipping () and Navios Maritime Partners LP () are dragging down the sector overall, each earning a high score of D. DryShips () currently ranks F.

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.

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