Equity Strategies Group-Level Analysis Of The Equity Markets
Airlines Remain Attractive And Still Have Positive Fundamental Story
Even after several years of relative outperformance, Airlines currently ranks fourth highest among the 115 groups we track. Our confidence is supported by the compelling fundamental story. Management has been making disciplined decisions in the face of rising demand and falling fuel prices.
Cheap Energy—Which Industries Benefit The Most?
It’s more complicated than one would think. Besides input costs, one must consider the impact on revenues, and whether various pricing differentials come into play.
Selected Attractive Groups
Homefurnishing Retail, Apparel Retail, Systems Software
GS Scores Perform Well; Profitability Category Leads
Our domestic Group Selection (GS) Scores worked well in 2014. Even more encouraging, all of the outperformance was due to the Attractive groups outperforming the average group. Among the factor categories driving the GS Scores, Profitability factors worked best; unusual in a strong bull market.
Retail Theme Compelling; Purchased Hypermarkets
Retail-related industry groups continue to strengthen in our GS Scores, and Hypermarkets & Super Centers is one of the top rated groups in our rankings. This also gives exposure to Consumer Staples, currently the highest rated among our composite sector scores.
Upgraded Attractive Groups
The best performing Attractive industries in 2014 came from five different sectors. Looking to 2015, groups from the Information Technology, Health Care, Consumer Discretionary, and Consumer Staples sectors look appealing.
Still Bullish On Domestic Oil Refiners
Amidst the Energy sector tumult, the Oil & Gas Refining & Marketing group is the exception.
Retail Groups Rise In The Ranks
A new theme emerging within our GS Scores—Retail related industry groups are flocking to the upper rankings of the scores.
Tech Poised To Outperform!
Our GS Scores currently rank Information Technology as the second highest rated among the ten broad sectors.
U.S. IT Companies’ Global Dominance
A look at U.S. companies’ global IT market dominance, and the key factors that drive the competitive landscape.
Upgraded Attractive Groups
Homefurnishing Retail, Apparel Retail, Apparel Accessories & Textiles
Biotechnology Now Attractive; Purchased In Select Industries
This group offers low correlation, some defensive qualities, and a dose of volatility. Health Care is now the top rated broad sector and we are overweight this sector in Select Industries Portfolio.
Select Groups Upgraded To Attractive
A summary of the GS Score strength for Airlines, Health Care Distributors, and Hypermarkets & Super Centers.
GS Scores Hold Up During Volatility
The Attractive range of the Group Selection (GS) Scores outperformed the Unattractive range in the volatile September market.
Highlighted Attractive Groups and Current Attractive/Unattractive
Highlighted Groups, Consumer Finance, Technology Distributors, Beverages.
A Clean Bill For Health Care Facilities - Group Purchased In August
U.S. demographic and economic trends coupled with meaningful expansion of the insured population should continue to support Health Care Facilities.
Current Attractive & Unattractive Groups and Highlights
Auto Parts & Equipment has performed about twice as good as the market during the last 19 months. Margins still elevated, see more room for upside.
Relative Valuation Group Ranks
Consumer Discretionary and Information Technology produce six of the top ten groups.
Automotive Retail Shines In A Dimming Sector
We examine the highly ranked Automotive Retail group and explain why, despite its recent strength, it may still have room to run.
Current Attractive & Unattractive Groups and Highlights
Beverages is one of a handful of “defensive” groups which has staged a comeback in our ratings during the last few months.
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