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!

Stock Ratings Define Sector Ratings

NEW YORK (TheStreet) -- In March I noticed a dramatic shift in the distribution of buy rated stocks and sell rated stocks among the 16 sectors covered by ValuEngine. My analysis resulted in how I rated key sectors and what story each told about the U.S. economy. This last time I covered this concept was on April 5 when I wrote, Stock Ratings Key Market Top. Today I provide the current status of this unique analysis.

The basic materials sector is undervalued by 6.4% but only nine stocks out of 411 in the sector have buy ratings. There are 143 sell rated stocks and 57 strong sell rated stocks and thus 48.7% of all stocks in this sector are rated sell. This gives the sector an underweight rating.

Among the sell rated names in this sector is Dow component DuPont (DD) which peaked at $57.25 on May 31. The stock closed Friday at $52.68 with this month's value level at $48.23.

The construction sector is 13.2% overvalued but only 17 stocks out of 160 in the sector have buy ratings. There are 40 sell rated stocks and 27 strong sell rated stocks and thus 41.9% of all stocks in this sector are rated sell. This gives the sector an underweight rating.

There are five home builders in the sector that have been upgraded to buy recently and I will cover them on Thursday following this week's data on home builder sentiment and housing starts.

A notable buy rated stock in this sector is cement company Cemex (CX) which peaked at $12.57 on May 15. The stock closed Friday at $10.46 with its 200-week simple moving average at $9.90.

The oils-energy sector is 8.2% overvalued and only 14 stocks out of 558 stocks in the sector have buy ratings. There are 141 sell rated stocks and 47 strong sell rated stocks and thus 33.7% of all stocks in this sector are rated sell. This gives the sector an underweight rating.

A notable buy rated stock in this sector is the extremely volatile First Solar (FSLR) which peaked this year at $59.00 on May 21. The stock closed Friday at $44.71 with a semiannual value level at $36.34 and this month's pivot at $48.63, which was a value level as June began.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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