P/E By Sector: Consumer Discretionary's Ratio Has Fallen Most During Recent Downturn

Hickey and Walters (Bespoke) submit: Below we highlight the estimated P/E (based off expected earnings) ratios of the ten major sectors and the S&P 500. We have also highlighted where the estimated P/E ratios stood on the day of the recent market top (7/19) as well as one year ago.

As shown below, estimated P/Es have expanded across the board over the last year and fell during the recent market downturn. The consumer discretionary sector's estimated P/E has fallen the most since 7/19, while telecom's has fallen the least. The decline in estimated P/Es can be attributed to stronger expected earnings growth and/or declines in price.