Group Reports
Blue Book - February 2019
Our group coverage spans most of the traditional groups as defined by Standard & Poor’s and Morgan Stanley Capital International. At times, we found ourselves in disagreement with the S&P/MSCI “standardized” group delineation, but this structure was maintained, with minimal modifications. We have, however, added additional component stocks to all groups and adopted our proprietary approach to component weightings.
Discretionary Defies Gravity; Dept. Stores Purchased
Brick-and-mortar retail, not to mention antiquated Department Stores, have pretty much been declared dead in the age of Amazon. Often, this is when our GS Scores shine brightest... by picking industries that, at the time, are not intuitive and hard to stomach.
Highlighted Attractive Groups
Airlines, Life & Health Insurance, and Household Durables are among the month’s intriguing opportunities based on the current Group Selection (GS) Scores.
Highlighted Attractive Groups
Auto Parts & Equipment, Hotels & Leisure, and Semiconductor Equipment are among the month’s intriguing opportunities based on the current Group Selection (GS) Scores.
Humble Oil
With Energy stocks underperforming the S&P 500 by 20% YTD, contrarian clients are wondering if the sector holds any promise. Here we look for valuation signals that offer encouragement for bargain-hunting investors willing to buy on weakness.
Highlighted Attractive Groups
Automobile Manufacturers, Health Care Distributors, and Homebuilding appear to be solid opportunities based on the current Group Selection Scores.
Financials Remain Atop Sector Rankings
Our Financials Sector Ranking has been strengthening since August—well before the Trump Bump. The addition of Regional Banks to our SI Portfolio boosts our Financials exposure to an overweight 26% versus the S&P 500’s 15% weight. Reinsurance and Developed Diversified Banks are also among the Attractively-rated options for diversification within the sector.
Highlighted Attractive Groups
Automotive Retail improved into the top five rankings; Biotechnology, despite being out of favor, has both long-term growth potential and higher profitability than Pharmaceuticals; Developed Diversified Banks is up almost 20% since the election.