The Financial Sector contains companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, real estate investment trusts (REITs), as well as companies engaged in real estate management & development.
|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 underweighting the S&P 500 financials sector. Year to date
through July 12, the S&P 500 financials index, which represented 13.1% of the
S&P 500 index, was up 18.7% in price, compared with a 20.2% increase for the
S&P 500. In 2018, this sector index fell 14.7% versus a price decline of 6.2%
for the 500. There are 12 sub-industry indices in this sector. Diversified banks is the largest, representing 32.7% of the sector's market value, while
reinsurance is the smallest, accounting for 0.3% of the sector.</p><p>The
cap-weighted average of this sector's component company CFRA STARS (STock Appreciation Ranking System) is 3.4 out of 5.0, as compared with a
cap-weighted average of 3.7 for the S&P 500. The sub-industries within this
sector that currently show the highest average STARS are investment banking, life & health insurance and multi-line insurance. Those with the lowest
average STARS include consumer finance, financial exchanges & data, insurance
brokers, multi sector holdings and thrifts & mortgage finance. According to
S&P Capital IQ consensus estimates, the sector is projected to record a 7.5%
year-over-year increase in operating earnings per share in 2019, as compared with the S&P 500's estimated EPS gain of 1.5%. Sector EPS are projected to
advance 8.8% in 2020 versus an 11.8% expected increase for the S&P 500. In
addition, revenues for the sector are forecast to increase by 5.5% in 2019 and 4.7% in 2020 versus the S&P 500's projected rise of 4.6% and 6.7%,
respectively. The sector's price-to-earnings ratio of 12.6x, based on S&P
Capital IQ consensus next 12-month operating EPS estimates, is well below the S&P 500's forward P/E of 18.0x. S&P Capital IQ also reports that the consensus
long-term EPS growth estimate for this sector is 10.3% versus the S&P 500's
12.1%, giving the sector a P/E-to-projected EPS growth rate (PEG) ratio of 1.2x, which is below the broader market's PEG of 1.5x. Finally, this sector
pays a dividend yield of 2.2%, as compared with the yield of 1.9% 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)||12.56|
|P/E (This Year's Estimate)||10.43|
|EPS Growth (TTM vs. Prior TTM)||24.72%|
|Revenue Growth (TTM vs. Prior TTM)||8.62%|
|Return on Equity (TTM)||20.40%|
|Return on Investment (TTM)||6.35%|
|Total Debt/Equity (TTM)||186.05|
|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.