This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Beware of 'Value Traps' Ford, HP, SanDisk


As for the value-trap industries, there are seven, with the most notable being oil, gas and consumable fuels, capital markets, semiconductors and automobiles. There are 13 industries noted as attractive, with financial-related industries dominating the list, including the consumer-finance, diversified-financial-markets and insurance industries finishing in the top five.

Within the value-trap industries, I also looked for stocks that met the same sort of criteria. One note: For valuation with stocks, I used our proprietary valuation score, which looks at several measures. Here are stocks in the value-trap industries that look attractive from valuation measures, but have displayed weak price and earnings momentum.

Oil Gas and Consumable Fuels:
Forest Oil (FST) -- Rated Hold by TheStreet Ratings
Sandridge Energy (SD) -- Rated Sell by TheStreet Ratings
Marathon Oil (MRO) -- Rated Hold by TheStreet Ratings

Computers and Peripherals:
STEC (STEC) -- Rated Hold by TheStreet Ratings Hewlett Packard (HPQ) -- Rated Hold by TheStreet Ratings
SanDisk (SNDK) -- Rated Buy by TheStreet Ratings

Capital Markets:
Schwab (SCHW) -- Rated Hold by TheStreet Ratings
Artio Global (ART) -- Rated Sell by TheStreet Ratings
Credit Suisse (CS) -- Rated Sell by TheStreet Ratings
Janus Capital (JNS) -- Rated Hold by TheStreet Ratings
Deutsche Bank (DB) -- Rated Sell by TheStreet Ratings

Containers and Packaging:
Boise Inc (BZ) -- Rated Hold by TheStreet Ratings
Owens-Illinois (OI) -- Rated Hold by TheStreet Ratings
Greif (GEF) -- Rated Buy by TheStreet Ratings

Semiconductors & Semiconductor Equipment:
Kulicke and Soffa (KLIC) -- Rated Hold by TheStreet Ratings
MEMC Electronic (WFR) -- Rated Hold by TheStreet Ratings
ST Microelectronics (STM) -- Rated Hold by TheStreet Ratings
Yingli Green Energy Holding (YGE) -- Rated Hold by TheStreet Ratings

Ford Motor (F) -- Rated Buy by TheStreet Ratings

Electrical Equipment:
Enersys (ENS) -- Rated Hold by TheStreet Ratings

Have any questions on these stocks or other industries on the list? Feel free to ask me here or on twitter at @bostoncfa.

Equity research manager Chris Stuart, CFA, joined TheStreet Ratings after working as a senior investment analyst with Merrill Lynch covering small-cap equity and alternative investment strategies. Prior to that, Stuart worked for One Beacon Insurance as an actuarial analyst and at H&R Block as a financial adviser. Stuart earned his bachelors degree in finance from the University of Massachusetts, Amherst. He holds a Chartered Financial Analyst (CFA) designation and is a member of the Boston Security Analysts Society (BSAS) and the CFA Institute.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs