Sector views
Real Estate rose to Marketperform this month as we lifted our override and allowed its rating reflect its rank in our factor model. Real Estate hasn’t been in the bottom three since April, although we had rated it Underperform since our public ratings began in February 2024, based on high interest rates and vacancies. Financials, Energy and Materials remain Outperform, with Consumer Discretionary now our only Underperform.
Meanwhile, we’ve kept our override on Communication Services partly because it’s dominated by a few stocks we rate highly. We also have continued to override the factor model on Information Technology, which is ranked in last place but nevertheless is rated Marketperform based on what we believe are good growth prospects.
