Global Sectors FVMR Snapshot
Watch the video with Andrew Stotz or read a summary of the Global Sectors FMVR Snapshot below.
Global Sectors FVMR Snapshot – July 2016
Fundamentals
Health Care offers the highest ROE among sectors. The Energy sector is currently at low profitability, but high DPR, and Info Tech companies keep a large portion of their cash as the sector shows the lowest DPR.
Valuation
Energy is trading at high PE due to low earnings and Financials trade about 1x PB. Consumer Staples and Health Care is most expensive on PB, note that Health Care is cheaper but generates a higher ROE.
Momentum
Consensus expect earnings to contract in Energy, Utilities and Financials, while most earnings growth in 2016 is expected in Industrials and Consumer Discretionary. Brexit hit Financials as seen in the 2W performance down 6%, and the sector also has the worst 1Y price change.
Risk
Info Tech as a sector is net cash, hence low balance sheet risk. In the past 3 months, Materials and Financials have been the most volatile sectors.
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