Energy's Loss is the Financials Gain

Just as the stocks in the financial sector have stabilized while energy stocks have been weak, analyst sentiment on the sectors seem to be following a similar trend.  In the charts below, we track the percentage of stocks in each sector that have seen positive or negative estimate revisions over a rolling one-month period.  As shown in the shaded areas, estimate revisions for both the energy and financial sectors have had sharp reversals.  In mid-July, nearly 55% of stocks in the financial sector had seen their numbers cut in the prior month.  Today, the percentage has decreased to only 25%.  In the energy sector, in mid-July analysts had raised estimates on nearly 75% of the stocks in the index over the prior four weeks.  Currently, nearly 25% of the stocks in the sector have seen their numbers cut over the last four weeks.

 

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