Sector Forecasts

This is from S&P. Here are the full-year operating forecasts for the S&P 500 and each sector on March 31 and again two days ago, with the percent change:

Sector 3/31 5/10 Change
S&P 500 $78.05 81.33 4.20%
Discretionary $15.21 16.06 5.58%
Staples $19.43 19.20 -1.19%
Energy $33.26 34.51 3.74%
Financials $13.17 15.03 14.12%
Health Care $30.48 29.72 -2.51%
Industrials $15.53 16.41 5.65%
Technology $23.75 24.73 4.13%
Materials $11.73 12.58 7.23%
Telecom $7.50 7.94 5.79%
Utilities $12.84 12.75 -0.70%

You can see that the Financials have had the biggest improvement. The only sectors with lower forecasts are the defensive ones — Health Care, Staples and Utilities.
Here’s the same table but with 2011 forecasts and the first date in April 6.

Sector 4/6 5/11 Change
S&P 500 $93.56 $94.51 1.02%
Discretionary $18.06 $18.52 2.56%
Staples $21.45 $21.54 0.41%
Energy $42.30 $41.21 -2.58%
Financials $18.10 $19.05 5.23%
Health Care $33.18 $32.67 -1.54%
Industrials $18.85 $19.01 0.84%
Technology $27.89 $28.42 1.89%
Materials $12.06 $15.51 28.56%
Telecom $8.30 $8.32 0.29%
Utilities $12.96 $12.90 -0.49%

Here’s a look at the P/E Ratios based on the 2010 and 2011 estimates:

Sector 2010 2011
S&P 500 14.21 12.23
Energy 12.37 10.36
Materials 15.49 12.56
Industrials 16.83 14.53
Discretionary 16.61 14.41
Staples 14.72 13.12
Health Care 11.87 10.80
Financials 14.20 11.21
Technology 14.97 13.02
Telecom 13.23 12.62
Utilities 11.93 11.79

Posted by on May 12th, 2010 at 1:41 pm


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