Zacks Telescope (Sector/Industry/Company Ranks)
September Zacks Sector/Industry ranks show the analyst community went defensive in a hurry.
Utilities and Telcos got big upgrades. Energy got an interesting upgrade, indicating a bottom may be in here. Financials and Info Tech went to Unattractive. The stock sell-off hurt investment funds. Semis are in the tank now, on China worry.
(1) Health Care remains Very Attractive. All three industry groups look solid.
Here’s a Zacks #1 Rank company: Universal Health Services (UHS)
The principal businesses of Universal Health Services, Inc. are owning and operating acute care hospitals, behavioral health centers, ambulatory surgery centers, radiation oncology centers and women's centers.
(2) Utilities get upgraded to Very Attractive. The leader is Utilities-Gas Distribution. Again, this speaks to a newly defensive market.
Here’s Zacks #1 Rank company: Centrica (CPYYY)
Centrica is a top thirty FTSE100 company with growing energy businesses in the UK, North America and Europe. They secure and supply gas and electricity for millions of homes and businesses and offer a distinctive range of home energy solutions and low-carbon products and services.
(3) Consumer Discretionary stays an Attractive Sector. Leadership is now the Autos, and Non-food Retail/Wholesale and Home Furnishings-Appliances. Consumer Electronics is the weakest industry.
Here’s a Zacks #1 Rank company: American Woodmark (AMWD)
AMERICAN WOODMARK CORP. manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets.
(4) Telcos get upgraded to Attractive. This speaks to a newly defensive market.
(5) Energy gets an upgrade from Very Unattractive to Market Weight. The Energy-Alternate Sources got to Very Attractive. Oil Misc. (Refiners) is Attractive. The rest are middle of the road. Coal is in the dumps.
(6) Consumer Staples are Unattractive. Both Soaps & Cosmetics and Food/Drug Retail got downgraded to Very Unattractive, sinking the sector.
(7) Financials slip to Unattractive. The Investment Funds get to Very Unattractive after the stock sell-off. Real Estate downgraded to Market Weight. Finance and Major Banks are Unattractive.
(8) Info Tech falls to Unattractive. The Computer Software industry is best at Market Weight. The Semis are now Very Unattractive.
(9) Materials stay Unattractive. The best industries are Paper and Containers & Glass, with their consumer focus. Metals-Non Ferrous is the worst, given the China slowdown.
(10) Industrials fall to Very Unattractive. Business Services and Airlines are the leaders. The worst spots are Industrial Products-Services, Metal Fabricating, Machinery Electrical, and Pollution Control, in that order.
Free Download - Zacks Market Outlook - September 2015
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