5 Best Sectors to Watch This Week

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For the week, Tobacco, Diversified Utilities, Leisure Goods, Water Utilities, and Electric Utilities are the top sectors on the Portfolio Grader database.

Tobacco is thriving this week with 88% of stocks in the sector (7 out of 8) currently rating a “buy.” With overall grades of A, Altria (NYSE:MO), Universal Corp. (NYSE:UVV), and Philip Morris International (NYSE:PM) are buoying the sector. The best performer in this sector is Altria, which saw its price rise 36.2% in the last 12 months. This outpaces the S&P 500, which has increased just 1.3% from one year ago.

With 87% of the sector’s stocks (20 out of 23) rating a “buy,” the Diversified Utilities sector is one of the strongest. Among Diversified Utilities stocks, CH Energy (NYSE:CHG) and Sempra Energy (NYSE:SRE) are leading the way with grades of A. Wisconsin Energy (NYSE:WEC) also has a top grade of B. Sempra Energy is the best performer in this sector, with a 35.8% increase in the last 12 months.

The Leisure Goods sector is near the top of the Portfolio Grader database this week, with 86% of its stocks (6 out of 7) currently rating a “buy.” Out of the Leisure Goods stocks, Smith & Wesson (NASDAQ:SWHC), Sturm Ruger (NYSE:RGR), and LeapFrog (NYSE:LF) are out front with A’s. LeapFrog is the top stock in its sector, with a 156% increase from 12 months ago.

Water Utilities stands out with 80% of the sector’s stocks (4 out of 5) rating a “buy.” With grades of A, American States Water (NYSE:AWR), American Water Works (NYSE:AWK) are buoying the sector. Aqua America (NYSE:WTR) also has a solid B. Showing the most overall growth in its sector in the last 12 months, Aqua America is the top stock, with a 19.8% increase.

The Electric Utilities sector’s track record is proving one of the best with 74% of its stocks (28 out of 38) rating a “buy.” Among Electric Utilities stocks, NextEra Energy (NYSE:NEE), FirstEnergy (NYSE:FE), and Hawaiian Electric Industries (NYSE:HE) top the list with A’s. Over the last 12 months, NextEra Energy is the best performer in this sector, with a 22.5% increase.

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.

 


Article printed from InvestorPlace Media, https://investorplace.com/2012/07/5-best-sectors-to-watch-this-week-swhc-rgr-lf/.

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