Sector Views: Monthly Stock Sector Outlook

Schwab Sector Views is our six- to 12-month outlook for stock sectors, which represent broad sectors of the economy. The Schwab Center for Financial Research (SCFR) combines a factor-based approach with a market and economic assessment to determine the ratings. For the basics on sectors, please see Stock Sectors: What Are They? How Are They Used?
Sector views
We continue to maintain a neutral Marketperform rating on all sectors, a shift we made in April after the White House announced broad-reaching tariffs on imports. Uncertainty about the ultimate level and timing of the tariffs has made it difficult to assert a view on which sectors might outperform or underperform the S&P 500 index, so we are holding all sector ratings at Marketperform until we have more clarity on trade policy.
Sector ratings
- Sector
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Rating(vs. S&P 500)
- Rating change vs. last month?
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SectorFinancials>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>
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SectorIndustrials>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>
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SectorEnergy>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>
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SectorMaterials>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>
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SectorUtilities>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>
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SectorCommunication Services>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>
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SectorReal Estate>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>
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SectorConsumer Staples>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>
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SectorConsumer Discretionary>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>
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SectorHealth Care>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>
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SectorInformation Technology>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>
Factors behind the stock sector ratings
- Sector
- Value
- Growth
- Sentiment
- Stability
- Quality
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SectorFinancials>Value+>GrowthN>SentimentN>StabilityN>QualityN>
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SectorIndustrials>ValueN>GrowthN>SentimentN>StabilityN>QualityN>
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SectorEnergy>Value+>Growth+>SentimentN>Stability—>Quality—>
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SectorMaterials>Value+>Growth+>Sentiment+>StabilityN>Quality—>
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SectorUtilities>ValueN>Growth+>Sentiment+>StabilityN>Quality—>
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SectorCommunication Services>ValueN>GrowthN>Sentiment—>StabilityN>QualityN>
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SectorReal Estate>ValueN>Growth—>Sentiment+>Stability+>Quality+>
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SectorConsumer Staples>ValueN>GrowthN>SentimentN>Stability+>QualityN>
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SectorConsumer Discretionary>Value—>GrowthN>Sentiment—>Stability—>Quality+>
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SectorHealth Care>Value—>Growth—>SentimentN>Stability+>QualityN>
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SectorInformation Technology>Value—>Growth—>Sentiment—>Stability—>Quality+>
Sector performance
- Sectors (in alphabetical order)
- Weighting in S&P 500 (%)
- Trailing six-month performance (%)
- Trailing 12-month performance (%)
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Sectors (in alphabetical order)Communication Services>Weighting in S&P 500 (%)9.3>Trailing six-month performance (%)4.9>Trailing 12-month performance (%)19.0>
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Sectors (in alphabetical order)Consumer Discretionary>Weighting in S&P 500 (%)10.3>Trailing six-month performance (%)-0.5>Trailing 12-month performance (%)12.0>