Executive summary
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.
Biotechnology looks significantly underpriced relative to historical averages for 3 valuation ratios, but the profitability metric is below the historical baseline. Ratios are mixed for pharmaceuticals: price/earnings is close to the historical average, price/free cash flow is excellent, but price/sales and return on equity are very bad. Other healthcare industries are significantly overvalued. Combining all metrics, healthcare equipment is the worst-looking group in the sector. Life