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  • Sector Fundamentals - Healthcare and Financials continue to surprise! 2 comments
    Mar 21, 2010 7:09 PM

    In 2010, sectors with greatest exposure to global market will show better EPS growth, both Energy and IT looks favorable here. Additional, catalysts for Energy is the recent improvement in oil prices and for IT, continued weakness in dollar. Health care is another sector we like, which is expected to gain from health reforms, emerging market growth, renewed interest in vaccines due to Swine Flu.

    Healthcare also looks great from a technical perspective. Key industries like Pharmaceuticals, Biotechnology and Managed Care are expected to perform well. You can also expect some M&A activities in bio tech sectors. Whether Obama's healthcare reform plans passes or not, we believe this sector has strong catalysts that will move it higher.The Health Care sector is forecast to post 15% EPS growth in 2010. Its P/E-to-projected-five-year EPS growth rate (NYSE:PEG) ratio of 1.4X is in line with the market's PEG ratio of 1.4X.

    Higher fuel cost may hit the industrial sector, but at the same time, a 46% earning from international market and improving global outlook for 2010 will be a EPS booster for this sector.

    Financials ranks highest in EPS growth and a Low valuation. Some of the latest Fed statements have helped boost financial stock in 2010, we expect financial to continue to be stronger this year. Utility stocks have low valuation and have seen some decent EPS growth. Although, they are not the best performers in today's market, you should certainly have utility stocks in your diversified portfilio due to its low risk.
    Please visit us here to see latest fact on sector fundamentals


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  • Charlie Anderson
    , contributor
    Comments (86) | Send Message
    Lately I have found telecomm companies come up again and again in my screens. I have also heard that they are oversold. What do you think?
    26 Mar 2010, 09:32 PM Reply Like
  • StockJupiter.Com
    , contributor
    Comments (9) | Send Message
    Author’s reply » telecom services suffers from an inferior EPS growth and hence we would recommend caution. The performance of this sector was mediocre in Q4 2009 and it did not show any good performance growth this year. We like Vodaphone (VOD) in this space. LEAP is making some good bullish divergence. We mention this in our MACD divergence pick on our site.


    Our expectation is that with global recovery, sector will pick up and will be a good investment for 2-3 year time horizon.


    31 Mar 2010, 05:10 AM Reply Like
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