FANG - Energy And Materials Dashboard - Update

This article series provides a monthly dashboard of industries in each sector of the GICS classification. It compares valuation and quality factors relative to their historical averages in each industry.

Executive summary

Energy equipment services, oil/gas, metals/mining and paper/wood are significantly underpriced regarding historical averages. However, energy equipment/services are far below their baseline in profitability metrics, whereas paper/wood is above it. Chemicals look close to fair price. Packaging is significantly overpriced, but it is the best in profitability metrics, which may partly justify overpricing. The less attractive industry in these 2 sectors is construction