The Materials Sector encompasses a wide range of commodity-related manufacturing industries. Included in this sector are companies that manufacture chemicals, construction materials, glass, paper, forest products and related packaging products, and metals, minerals and mining companies, including producers of steel.
|Last % Change||Market Cap||Market Weight||Weighting Recommendations|
|S&P Capital IQ||Ned Davis Research (PDF)|
Sector Commentary from Standard & Poor's
<p>CFRA recommends overweighting the S&P 500 materials sector. Year-to-date
through December 31, 2017, the S&P 500 materials index, which represented 3.0%
of the S&P 500 index, was up 21.4% in price, compared with a 19.4% rise for
the S&P 500. In 2016, this sector index rose 14.1%, versus a price advance of
9.5% for the 500. There are 11 sub-industry indices in this sector. Diversified chemicals is the largest, representing approximately 27% of the
sector's market value, while metal & glass containers is the smallest,
accounting for less than 2% of the sector.</p><p>The cap-weighted average of
this sector's component company CFRA STARS (STock Appreciation Ranking System) is 3.9 out of 5.0, as compared to a cap-weighted average of 3.5 for the S&P
500. The sub-industries within this sector that currently show the highest average STARS are construction materials, copper, diversified chemicals,
diversified metals & mining, fertilizers & agricultural chemicals, metal & glass containers and steel. Those with the lowest average STARS include
commodity chemicals, forest products, gold, industrial gases and paper products. According to S&P Capital IQ Consensus Estimates, the sector is
projected to record an 18.1% year-over-year increase in operating earnings per share in 2018, as compared with the S&P 500's estimated EPS gain of 13.6%.
During 2017, this sector is expected to record an 10.2% rise in EPS, versus a 10.8% increase for the S&P 500. In addition, revenues for the sector are
forecast to rise by 8.8% in 2018 versus the S&P 500's projected rise of 5.8%.
The sector's price-to-earnings ratio of 19.0X, based on consensus 2018 operating EPS estimates, is slightly higher than the S&P 500's forward P/E of
18.6X. S&P Capital IQ also reports that the consensus long-term EPS growth
estimate for this sector is 12.9%, equal to the S&P 500's 12.9%, giving the
sector a P/E-to-projected EPS growth rate (PEG) ratio of 1.7X, which is slightly higher than the broader market's PEG of 1.6X. Finally, this sector
pays a dividend yield of 1.2%, as compared with the yield of 1.8% for the S&P
500.</p><p>CFRA's proprietary technical indicator for this sector currently
shows a positive reading. In researching the past market history of prices and trading volume for each company, CFRA's computer models apply special
technical methods and formulas to identify and project price trends for the sector.</p><p>/Sam Stovall<p>
|P/E (Last Year GAAP Actual)||20.91|
|P/E (This Year's Estimate)||18.72|
|EPS Growth (TTM vs. Prior TTM)||148.21%|
|Revenue Growth (TTM vs. Prior TTM)||17.62%|
|Return on Equity (TTM)||15.54%|
|Return on Investment (TTM)||7.16%|
|Total Debt/Equity (TTM)||102.36|
|How are performance, market cap, market weight, and fundamentals calculated?|
U.S. Sectors & Industries Performance is represented by the S&P 500 GICS® (Global Industry Classification Standard) indices. Last % change is the nominal change in the price of the index from the previous trading day's close expressed as a percentage as of the index value at the time noted in the Date & Time field. All dates and times are reported in ET.
Chart Performance enables you to chart and change performance timeframe of daily percent change for the indices as well as the ability to add a user-entered symbol. Chart Performance figures may vary slightly from 1 Year % Change due to different timeframes used in chart calculations.
GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). S&P uses GICS to determine the market segment to which a company is assigned. A company is assigned to a single GICS industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI. Revenues are a significant factor in defining principal business activity; however, earnings analysis and market perception are also important criteria for classification. There are currently 10 sectors and 68 industries. Three of the 68 industries do not have companies represented in the S&P 500 Index; therefore, performance is not available for Marine, Transportation and Infrastructure, and Water Utilities.
Standard & Poor's 500 (S&P 500) Index is an unmanaged market-weighted index of 500 of the nation's largest stocks from a broad variety of industries. The S&P 500 represents about 80% of the total market value of all stocks on the New York Stock Exchange. Market-weighted means that component stocks are weighted according to the total value of their outstanding shares.
Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.
Chart Performance enables you to chart and change performance timeframe of daily percent change for the indices as well as the ability to add a user-entered symbol.
Market Cap is the sum of the market value of each company assigned to the applicable GICS sector or industry. Market value or capitalization is calculated by multiplying the number of common shares outstanding by the market price per share at the end of each trading day.
Market Weight is updated weekly from S&P Capital IQ and represents the sum of the market cap of the companies in the applicable S&P 500 GIC sector index as a percentage of the total S&P 500 Index market capitalization.
Fundamental data is the cap weighted average (or industry standard method) of the most current value available at the end of each trading day for each company assigned to the applicable GICS sector or industry.
These reports provide deep analysis of industry dynamics, and the environment facing participating companies.
News, commentary, market data and research reports are from third-party sources unaffiliated with Fidelity, unless otherwise noted, and are provided for informational purposes only. Fidelity does not endorse or adopt third party content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.
Past performance is no guarantee of future results.