S&P 500 Relative Value by Sector

Savita Subramanian’s latest S&P 500 Relative Value Cheat Sheet came out this week and the Equity and Quant Strategist at BofA Merrill Lynch notes the following:

All ten sectors saw their absolute forward P/Es decline last
month, while the relative forward P/E increased only for Utilities, Health Care and
Tech. Utilities is now once again the most expensive sector vs. history on relative
forward P/E (eclipsing Financials); it trades at a 3% premium to the market when it
has historically traded at a 14% discount. Energy and Tech remain the most
attractive, suggesting 20% and 15% upside, respectively, just to return to average.

Subramanian also points out that Healthcare is now trading at a premium to Consumer Staples for the first time since 2006. Biotechnology stocks within the Healthcare sector have had a lot to do with that. The report says that Biotech is now selling at a 60% premium to the S&P 500 on a forward PE basis – which is double the premium it has historically traded at.

In the chart below, some relative valuations by sector within the S&P 500 along with implied upside / downside on three metrics:

(Click to Embiggen)

sector

Source:

S&P 500 Relative Value Cheat Sheet
Bank of America Merrill Lynch – February 13th, 2014

What's been said:

Discussions found on the web
  1. click here commented on Sep 14

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  2. w88 commented on Sep 20

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  3. EatVerts commented on Sep 22

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  4. kid commented on Sep 25

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  5. bitcoin era commented on Oct 01

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  6. 221043705 commented on Nov 05

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  7. Beretta Firearms For Sale commented on Nov 12

    … [Trackback]

    […] There you can find 55822 more Information to that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  8. 토토사이트추천 commented on Dec 18

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  9. replica watches commented on Jan 14

    … [Trackback]

    […] There you can find 62603 more Info to that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  10. Digital Transformation commented on Jan 17

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]

  11. Chicco Cybearpad manuals commented on Jan 20

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2014/02/15/sp-500-relative-value-by-sector/ […]