Below is a chart and table outlining the 2009 year to date performance of the sectors within the S&P 500. The Technology sector has lead the way thus-far while Utilities and Financials have been dragging down the overall average of the index. As previously reported in our Market Forecast Project, Technology was also voted most attractive sector according the the survery of over 100 professional investors. These sectors are based on the sector classification created by The Applied Finance Group.
*Valuation & EM Change are Ranks within their sector
|Ticker||Name||Sector|| Attractiveness||Valuation||EM Change|
|Attractive Technology Companies - S&P 500|
|IBM||INTERNAT BUSINESS MACHNS||Technology||Attractive||Attractive||Positive|
|WDC||WESTERN DIGITAL CORP||Technology||Attractive||Attractive||Negative|
|Unattractive Technology Companies - S&P 500|
|AMAT||APPLIED MATERIALS INC||Technology||Unattractive||Unattractive||Negative|
|JDSU||JDS UNIPHASE CORP||Technology||Unattractive||Unattractive||Negative|
|MU||MICRON TECHNOLOGY INC||Technology||Unattractive||Unattractive||Negative|
AFG's Buy/Sell Criteria - factors in Economic Margin, Management Quality, and AFG's Valuation Metric. In order to determine Management Quality, AFG scores management on their growth decisions in accordance with the company's ability to either create or destroy wealth. AFG's Valuation Metric measures a company's Percent to Target (the deviation between a stock's current trading price and its AFG current default target price). To derive the intrinsic value of a firm, AFG uses its proprietary Valuation Model.
AFG's Valuation Metric
– Measures the percent to target (deviation between a stock's current trading price and its AFG current default target price). To derive the intrinsic value of a firm, AFG uses its proprietary Valuation Model (modified discounted cash flow model).