There is More Value to be Found in the Finance Sector than in any other Sector: Part 9

Introduction

I found more value in the Finance Sector than I did in any other sector that I screened. All in all, I identified 131 attractively valued companies out of the 1,888 companies in the Finance Sector. This is approximately 10 times as many as I found in any other sector. Stated succinctly, there is a lot of value in the Finance Sector but a lot of redundancy as well.

There are 14 subsectors that collectively make up the Finance Sector. Furthermore, there are several research candidates in each subsector that are very similar to each other relative to growth, dividend yields and valuation. Consequently, for diversification purposes, you might want to only select those specific candidates in each subsector that appeal to you most. Stated more directly, there are a lot of viable choices for attractive investments in each subsector within the Finance Sector. Therefore, you can pick your favorite, or diversify among several different candidates in each subsector.

For example, the investor can literally take their pick of most regional banks and expect similar long-term results. The same could be said about the major banks. However, the Canadian domiciled major banks have more consistent long-term historical records. This is simply attributed to the fact that they did not participate in the US financial debacle that led to the Great Recession of 2008.

A Sector By Sector Review

This is part 9 of a series where I have conducted a simple screening looking for value over the overall market based on industry classifications and subindustry classifications reported by FactSet Research Systems, Inc. In part 1 found here I covered the Consumer Services Sector. In part 2 found here I covered the Communication Sector. In part 3 found here I covered the Consumer Durables Sector and its many diverse subsectors. In part 4 found here I covered Consumer Nondurables. In part 5 found here I covered companies in the Consumer Services Sector. In part 6 found here I covered the Distribution Services Sector. In part 7 found here I covered the Electronic Technology Sector. In part 8 found here I covered the Energy Minerals Sector.

In this part 9 I will be covering the Finance Sector.

In each article in this series, I will be providing a listing of screened research candidates from each of the following industry sectors, the sector I’m covering in this article is marked in green: