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 is far below the historical baseline in profitability measured by return on equity, whereas paper/wood is above it. Chemicals are moderately overpriced and construction materials are not far behind. Packaging is significantly overpriced, but it is the best in profitability metric, which may partly justify overpricing.
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