Sector Analytics

We developed an extensive infrastructure to help analysts pick stocks from within sectors. For many, the most useful component is its analysis of what’s been driving performance within each sector. We think we have an understanding of how things typically work, but sometimes the setting isn’t typical. Each stock is compared to its peers using the building blocks of our modeling methodologies: Valuation, Capital Deployment, Earnings Quality, and Market Reaction. In general, we’re looking for attractively-valued companies where managements are taking actions that should benefit shareholders and where there may be signs that investors are beginning to recognize the potential of the changes. The way the components are put together varies by sector and based on the market conditions.

For each stock, we display the quintile ranking from our most efficacious model relative to that sector. We also present the ranks for critical factors (i.e., free cash flow yield, normalized-P/E ratios, change in capital spending versus the prior trend, etc.) that should be helpful to analysts. The results are also rolled up to the industry level, providing a disciplined prism through which to see the contours of the landscape. We’ve consistently found that when making sector or industry bets, valuation is the most important consideration.

We’ve developed Sector Analytic frameworks for the following groups:

  • U.S. Large Cap
    • Technology
    • Health Care
    • Consumer Cyclicals
    • Consumer Staples
    • Industrial Capital Equipment
    • Industrial Commodities
    • Energy
    • Financials
    • Telecommunications and Utilities
  • U.S. Small Cap
    • Technology
    • Health Care
    • Consumer Cyclicals
    • Consumer Staples
    • Industrial Capital Equipment
    • Industrial Commodities
    • Energy
    • Financials
    • Telecommunications and Utilities
  • Continental Europe
    • Technology
    • Health Care
    • Consumer Cyclicals
    • Consumer Staples
    • Industrial Capital Equipment
    • Industrial Commodities
    • Energy
    • Financials
    • Telecommunications and Utilities
  • World
    • Technology
    • Health Care
    • Consumer Cyclicals
    • Consumer Staples
    • Industrial Capital Equipment
    • Industrial Commodities
    • Energy
    • Financials
    • Telecommunications and Utilities

If you are interested in our sector analytics services please reach out to your sales coverage: HERE.