BKH - Valuations In Utilities - 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
The only underpriced group regarding historical averages in valuation ratios is power producers/energy traders. However, it has a negative median ROE, far below the historical baseline. Other industries are close to their profitability baseline, but significantly more expensive than their historical averages. No industry in the sector looks good combining valuation and profitability. However, it may be possible to find quality stocks at