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.
Executive summary
Combining several ratios, biotechnology looks underpriced by about 30% relative to historical averages, but profitability is significantly below the baseline. Metrics are mixed for pharmaceuticals: price/earnings and price/free cash flow are attractive, but price/sales and return on equity look bad. Other healthcare industries are overpriced. Healthcare equipment is the worst one combining all metrics. Life science tools/services is the only healthcare industry above its profitability baseline,