XLC - Technology And Communication Dashboard - May Edition
This article series provides a monthly dashboard of industries classified by sectors. It compares valuation and quality factors relative to their historical averages in each industry.
Executive summary
Computers/peripherals and wireless telecom are underpriced relative to historical averages, and above the profitability baseline measured by return on equity. Electronic equipment is close to fair price. All other IT and communication industries are overpriced. Diversified telecom is significantly above its historical baseline in profitability, which may partly justify overpricing. Entertainment and software are the most overpriced industries in this review.
Since last month:
- P/E has improved