MarketWatch: “As tech stocks skyrocket, here are the S&P 500’s best and worst sectors for profit margins”By datatrekresearch in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek co-founder Nick Colas:
.... "The U.S. stock market has seen company profit margins shrink consistently over the past two years, but they remain “solid” for the S&P 500 while estimates for the information-technology sector appear to be holding up relatively well, according to DataTrek Research.
“The last few years have been remarkably good for this sector, and yet they continue to show the second highest margins of any S&P group” in the second quarter, said Nicholas Colas, co-founder of DataTrek, in a note emailed Tuesday. “While Tech’s net margins are down modestly versus the 5-year average,” he found “they are holding in well.”
In the chart below, Colas highlighted how S&P 500 profit margins estimated at the sector level for the second quarter are faring relative to the broad stock-market index, based on comparisons with each sector’s five-year average. His note cites FactSet as the source for the chart"....
Full article here on MarketWatch.