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Information Technology

Aug 06 2019

Sector Rankings; Attractive & Unattractively-Rated Industry Groups

  • Aug 6, 2019

The top-three-rated sectors are Communication Services, Information Technology, and Financials. As recently as March, Financials ranked in 9th place out of 11 sectors; it has now placed among the top four since May. Real Estate dropped out of the top three after a two-month visit and is situated in 5th place this round. For the fifth consecutive month, the three lowest-ranked sectors are Utilities, Materials, and Energy.

Jun 07 2019

Sector Rankings

  • Jun 7, 2019

The top-three-rated sectors are Information Technology, Real Estate, and Financials.

May 07 2019

Information Technology Sector Now Highest Rated

  • May 7, 2019

For the first time since late 2017, Information Technology moved into the top-rated spot. This sector has historically produced especially strong results during periods after which it took over the #1 seat.

Jun 22 2018

Altitudes Are Too High— And Attitudes Are Getting There

  • Jun 22, 2018

An important feature of this bull market—and a reason for its longevity—is the slow recovery in investor attitudes relative to valuation altitudes...

Oct 27 2017

Two Sector Picks For The Home Stretch

  • Oct 27, 2017

With the Major Trend Index positive and the market about to enter the seasonally most bullish part of the calendar, we’ll offer both a trendy sector and a contrarian one for allocators looking to cap off an already good year. Specifically, we’d recommend heavy exposure to both the Information Technology and Financial sectors, which rate #3 and #1 in the October Group Selection (GS) framework.

 

Jun 07 2017

A “Measured” Melt-Up

  • Jun 7, 2017

The stock market “melt up” scenario is underway but has proven less broad than we expected. Just as in the late-1990s, Technology and NASDAQ are the main subjects of investor adulation.

Jun 07 2017

Old School Tech Flies High; Semi Equipment Revisited

  • Jun 7, 2017

Although the glamorous Tech giants have captured investors’ attention of late, from our perspective, the old school, physical Semiconductor plays hold the greatest appeal.

May 05 2017

Technology: Popping The “Bubble” Talk

  • May 5, 2017

The S&P 500 eclipsed the “Twin Peaks” (2000 and 2007 highs) in 2013, and two years later the NASDAQ topped its 2000 high.

Feb 05 2016

Info Tech, Financials, Health Care—Remain Top Three Rated Sectors

  • Feb 5, 2016

Among the bottom ranked sectors are Utilities, Materials, Energy, and Telecom Services. These four sectors have been the bottom four rated sectors for a minimum of eight months.

Dec 08 2015

Tech In The Pole Position

  • Dec 8, 2015

The S&P 500 Information Technology sector has just broken out to a 15-year relative strength high, and it jumped two spots to the top scoring broad sector position. The breakout in Tech provides a rare example in which foreign market action presaged a major domestic move.

Nov 06 2015

Return Of The Tech? New Group Purchased

  • Nov 6, 2015

Over the past three months the Tech sector has strengthened in our work, as it’s risen back to the #3 position. In line with our disciplines, we increased the Select Industries Portfolio’s Tech exposure via the addition of a new, high-ranking group: Technology Distributors.

Aug 07 2015

Info Tech Sliding

  • Aug 7, 2015

IT’s overall sector rank has been falling recently. Growth has slowed, which has prompted downward earnings revisions, while valuation ratios have remained steady or gotten pricier.

Dec 05 2014

Tech Poised To Outperform!

  • Dec 5, 2014

Our GS Scores currently rank Information Technology as the second highest rated among the ten broad sectors.

Dec 05 2014

U.S. IT Companies’ Global Dominance

  • Dec 5, 2014

A look at U.S. companies’ global IT market dominance, and the key factors that drive the competitive landscape.

Jun 06 2014

“Old Tech” Profiting From Explosion Of “New Tech” Content?

  • Jun 6, 2014

We identify the “Old Tech” players that will likely reap the benefits from the ever-growing volume of data being generated, stored, and transmitted on line.

Apr 08 2014

Late March Reversal… And The First Shall Be Last

  • Apr 8, 2014

We examine the impact of March’s strong group leadership reversal on the top and bottom of our group model.

Apr 07 2014

Profit Margins At The Sector Level

  • Apr 7, 2014

All ten of the S&P 500 sectors recorded a sequential increase in four-quarter trailing net profit margins. But consider where sector margins stand today relative to their 25-year medians. Eight of ten S&P 500 sectors are recording profit margins well above their long-term medians.

Mar 07 2014

Group Update: IT Consulting & Other Services

  • Mar 7, 2014

We’ve held this group since August 2012. Its GS Score has continued to improve and currently ranks second out of 120 groups. Solid factor readings, coupled with a brightening fundamental picture in both the industry and the sector, keep us invested in this space.

Feb 07 2014

Discrepancies Arise Between December & January

  • Feb 7, 2014

January could be a month that disrupts the current trend, but one month is not enough time to merit a changing of the guard.

Feb 07 2014

There’s A Lot To Like In Systems Software

  • Feb 7, 2014

In addition to impressive factor readings, we like the fundamental trends in this space.

Jan 08 2014

Sector Performance – Finding Discrepancies

  • Jan 8, 2014

Our Tech sector outpaced the S&P 500 Tech sector by  1400 bps and our Materials sector lagged the S&P 500 Materials by 2300 bps. Here’s why…

Jan 08 2014

GS Scores in 2014

  • Jan 8, 2014

Looking forward, groups from the Information Technology, Health Care, Consumer Discretionary, and Financials sectors look appealing.

Dec 06 2013

2013 Factor Performance: What Worked? What Will Keep Working?

  • Dec 6, 2013

Momentum and Value worked in 2013. Materials and Financials were the easiest sectors to exploit; Discretionary and Tech the most difficult. Momentum works in December; Value and Small Caps at the start of the year.

Nov 07 2013

Tech Sector Looking Healthy - Technology Distributors Purchased

  • Nov 7, 2013

Our quantitative measures for the group and broad sector continue to improve; we think the recent relative turnaround in these stocks is poised to continue.

Oct 08 2013
Oct 08 2013

Group Models: Info Tech Tops Domestic, Financials Remain Atop Global

  • Oct 8, 2013

Both models have numerous Information Technology and Financials groups in Attractive territory. Neither model has any Unattractive Tech groups. Alternatively, neither model has any Attractive Utilities groups, while several Utilities rate Unattractive in each.

Sep 10 2013

Group Models: Info Tech Tops Domestic, Financials Tops Global

  • Sep 10, 2013

Both models (particularly domestic) have a number of Attractive rated Information Technology groups and no Unattractive rated Tech groups. Financials’ domination of the Global Attractive range continues.

Aug 07 2013

A Turn In Tech’s Tide?

  • Aug 7, 2013

Technology may be the biggest sector disappointment in the current eight-month leg of the rally, if not for the entire bull run from early 2009.

Aug 06 2013

Electronic Manufacturing Services Purchased In Select Industries

  • Aug 6, 2013

Attractive valuations, improving growth and technical strength are the key drivers. The group offers an opportunity to participate primarily in the overall growth of computing devices.

Aug 06 2013

Group Models Agree On Energy & Materials

  • Aug 6, 2013

But Information Technology rises to the top of the Domestic model, while the trend of Financials domination in the Global model remains intact.

Jul 12 2013

Domestic and Global Group Models: Strong Agreement On Financials

  • Jul 12, 2013

Our Domestic Scores have five Financials groups rating Attractive; these same five industry groups are Attractive in our Global model. In total, seven Financials groups rank Attractive in the Global model, with insurance groups looking particularly Attractive.

Sep 05 2007

Info Tech As The New Leadership Sector?

  • Sep 5, 2007

There has been a lot of talk recently by PMs and market commentators citing Technology as the place to be. However, when the performance is disaggregated, it becomes clear that this broad sector does not in fact look so good. There are pockets of strength (like the Tech…Big Ten), but our message to readers is be careful.

Apr 04 2007

Technology: Seven Years After The Bubble And Still Struggling

  • Apr 4, 2007
  • Our quantitative work on technology remains poor, and only a single tech subgroup—Technology Distributors—makes our current Attractive list.  Per the Group Selection disciplines, there are currently no technology stocks in our Select Industries portfolio.
  • Tech’s underperformance has helped restore better relative value to the sector, but valuations aren’t yet cheap enough for a big “reversion-to-the mean” bet.
Apr 05 2006

Insider Buying/Selling In Technology Sector…..Some Isolated Buy Signals

  • Apr 5, 2006

At the market lows, the Tech insiders while not net buyers clearly slowed their aggressive selling.

Feb 05 2006

Tech Watch Revisited – Examining The Bullish Case For Info Tech

  • Feb 5, 2006

Technology continues to be a hot topic. This month’s “Inside The Stock Market” takes an objective look at the Tech sector.

Aug 03 2005

Sustainable Tech Rally?

  • Aug 3, 2005

Sustainable Tech rally or nothing more than playing catch-up?

Oct 05 2004

Sector Spotlight...on Technology

  • Oct 5, 2004

Looking for Q4 tactical trading opportunities in Tech.

Mar 03 2004

Is The NASDAQ Recovery Over?

  • Mar 3, 2004

NASDAQ was only index to decline in February. Some are wondering if the rally is over for the NASDAQ. This month’s “Of Special Interest” looks at past NASDAQ recoveries.

Feb 03 2004

Tech Watch

  • Feb 3, 2004

GS Scores for Tech groups have been fading in recent months, with only one Tech group now viewed as Attractive. The quantitative deterioration prompted us to reduce portfolio Tech exposure.

Jan 05 2004

Tech Watch

  • Jan 5, 2004

The broad Tech sector has rallied significantly from lows and is not cheap by tradi­tional valuation measures. Upside driver is earnings momentum, which continues to be strong.