- Following a plunge in oil prices, the energy sector now ranks among the most attractive. But because U.S. shale production is likely to limit the long-term upside to oil prices, we think investors are more likely to find value in the less-price-sensitive areas of the sector, namely midstream and refining.
- Technology is another area where a sharp drop in shares has rendered a once-overpriced sector more palatable. Here, we think semiconductor stocks are the best bet. While the near-term outlook is weak after a couple years of tremendous growth, secularly growing demand for processing power, connectivity, and sensing capabilities in a wide variety of devices bodes well for the long term. [IMGCAP1)
Sector Outlooks:
Basic Materials: Fewer Buying Opportunities Than in Most Sectors
Communication Services: Attractive, Sustainable Yields on Offer
Consumer Cyclical: Firms That Blur the Lines of Digital and Physical Are Set to Excel
Consumer Defensive: Meaningful Opportunity in Tobacco
Energy: A Drop in Oil Prices Has Made Energy Stocks More Attractive
Financial Services: Value in Banking and Asset Management Firms
Healthcare: Specter of ACA Repeal Hangs Over Fairly Valued Sector
Industrials: Trade Tensions Lead to Attractive Valuations
Real Estate: Only a Few Opportunities in Fairly-Valued Sector
Technology: Semiconductor, Software Firms On Sale
Utilities: Investors Once Again Treating U.S. Utilities as a Safe Haven
Comments (0)