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

Automobiles:
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.

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