Stock Market Briefing:

S&P 500 Sectors & Industries

Forward P/Es
Yardeni Research, Inc.

February 19, 2018

Dr. Edward Yardeni

516-972-7683
eyardeni@yardeni.com

Joe Abbott
732-497-5306
jabbott@yardeni.com

Mali Quintana
480-664-1333
aquintana@yardeni.com

Please visit our sites at

www.yardeni.com
blog.yardeni.com

thinking outside the box

Table Of Contents Table Of Contents
S&P 500 Sector Forward P/Es 1-2
Consumer Discretionary Forward P/Es 3-4
Consumer Staples Forward P/Es 5
Energy Forward P/Es 6
Financials Forward P/Es 7
Health Care Forward P/Es 8
Industrials Forward P/Es 9
Information Technology Forward P/Es 10
Materials Forward P/Es 11
Telecommunication Services & Utilities Forward P/Es 12

February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/Es Yardeni Research, Inc.
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 S&P 500 Sector Forward P/Es
Figure 1.
35 35
S&P 500 FORWARD P/E RATIOS*

30 30
S&P 500 Index (17.1)
Consumer Staples (18.0)
Financials (13.6)
25
Health Care (15.7) 25

20 20

2/15

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 2.
55 55
S&P 500 FORWARD P/E RATIOS*
50 50

45 S&P 500 Index (17.1) 45

Consumer Discretionary (20.4)
Information Technology (18.2)
40 40

35 35

30 30

25 25

20 20
2/15
15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Page 1 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
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 S&P 500 Sector Forward P/Es
Figure 3.
65 65
S&P 500 FORWARD P/E RATIOS*
60 60
S&P 500 Index (17.1)
55 55
Energy (19.4)
Industrials (17.6)
50 50
Materials (17.1)
45 45

40 40

35 35

30 30

25 25

20 20
2/15
15 15

10 10
yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 4.
30 30
S&P 500 FORWARD P/E RATIOS*

S&P 500 Index (17.1)

25 Telecommunication Services (10.8) 25
Utilities (15.7)

20 20

2/15

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Page 2 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
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 Consumer Discretionary Forward P/Es
Figure 5.
45 45
S&P 500 FORWARD P/E RATIOS* CONSUMER DISCRETIONARY

40 Consumer Discretionary Sector (20.4) Automobile Manufacturers (7.0) 40

Advertising (14.5) Publishing (28.5)
Auto Parts & Equipment (15.5)
35 35

30 30

25 25

20 2/15 20

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 7 and 35 for all industries.
Source: Thomson Reuters I/B/E/S.

Figure 6.
45 45
S&P FORWARD P/E RATIOS:* CONSUMER DISCRETIONARY
Consumer Discretionary Sector (20.4) Hotels, Resorts & Cruise Lines (19.0)
40 40
Casinos & Gaming (22.0) Movies & Entertainment (13.8)
Restaurants (21.3)
35 35

30 30

25 25

20 2/15 20

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 40 for all industries.
Source: Thomson Reuters I/B/E/S.

Page 3 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Consumer Discretionary Forward P/Es
Figure 7.
35 35
S&P FORWARD P/E RATIOS:* CONSUMER DISCRETIONARY

Consumer Discretionary Sector (20.4)

30 Apparel, Accessories, & Luxury Goods (18.7) 30
Apparel Retail (16.5)
Footwear (26.4)
25 Leisure Products (24.8) 25

20 2/15 20

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 8.
50 50
S&P 500 FORWARD P/E RATIOS:* CONSUMER DISCRETIONARY
45 Consumer Discretionary Sector (20.4) Homebuilding (10.6) 45
Computer & Electronics Retailers (15.5) Household Appliances (11.0)
40 Home Improvement 40
Retailers (18.9)
35 35

30 30

25 25

20 2/15 20

15 15

10 10

5 5

yardeni.com
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 5 and 40 for all industries.
Source: Thomson Reuters I/B/E/S.

Page 4 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Consumer Staples Forward P/Es
Figure 9.
40 40
S&P 500 FORWARD P/E RATIOS:* CONSUMER STAPLES

35 Consumer Staples Sector (18.0) 35

Household Products (18.6)
Packaged Foods (16.4)
30 Personal Products (28.3) 30

25 25

20 20

2/15

15 15

yardeni.com
10 10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 10.
45 45
S&P 500 FORWARD P/E RATIOS:* CONSUMER STAPLES

40 40
Consumer Staples Sector (18.0)
Brewers (15.7)
35 35
Drug Retail (11.0)
Soft Drinks (20.9)
30 30
Tobacco (17.6)

25 25

20 20
2/15

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Page 5 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Energy Forward P/Es
Figure 11.
65 65
S&P 500 FORWARD P/E RATIOS:* ENERGY
60 60

55 Energy Sector (19.4) 55

Integrated Oil & Gas (17.6)
50 50
Oil & Gas Refining & Marketing (12.1)
45 45

40 40

35 35

30 30

25 25

20 2/15 20

15 15

10 10
yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 5.5 for all industries.
Source: Thomson Reuters I/B/E/S.

Figure 12.
50 50
S&P 500 FORWARD P/E RATIOS:* ENERGY

45 45
Energy Sector (19.4)
40 Oil & Gas Drilling (45.0) 40

Oil & Gas Equipment & Services (25.2)

35 Oil & Gas Exploration & Production (25.4) 35

30 30

25 25

20 2/15 20

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 5 and 45 for all industries.
Source: Thomson Reuters I/B/E/S.

Page 6 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Financials Forward P/Es
Figure 13.
22 22
S&P 500 FORWARD P/E RATIOS:* FINANCIALS

20 20

18 18

16 16

14 14
2/15

12 12

10 10
Financials Sector (13.6)
Asset Management & Custody Banks (14.1)
8 8
Diversified Banks (12.4)
Investment Banking & Brokerage (13.6)
6 6
Other Diversified Financial Services (10.0)
Regional Banks (14.1) yardeni.com
4 4
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 20 for all industries.
Source: Thomson Reuters I/B/E/S.

Figure 14.
30 30
S&P 500 FORWARD P/E RATIOS:* FINANCIALS

Financials Sector (13.6)

25 Insurance Brokers (17.6) 25
Life & Health Insurance (9.7)
Multi-Line Insurance (11.2)
20 Property & Casualty Insurance (13.4) 20

15 15
2/15

10 10

5 5

yardeni.com
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Page 7 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Health Care Forward P/Es
Figure 15.
70 70
S&P 500 FORWARD P/E RATIOS:* HEALTH CARE

60 60
Health Care (15.7)
Biotechnology (14.2)
50 Health Care Equipment (20.5) 50

Managed Health Care (16.8)

40 40

30 30

20 20
2/15

10 10

yardeni.com
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 16.
40 40
S&P 500 FORWARD P/E RATIOS:* HEALTH CARE
Health Care (15.7)
35 Health Care Distributors (12.3) 35

Health Care Facilities (11.8)

30 Pharmaceuticals (14.1) 30

25 25

20 20

2/15
15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 7 and 35 for all industries.
Source: Thomson Reuters I/B/E/S.

Page 8 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Industrials Forward P/Es
Figure 17.
35 35
S&P 500 FORWARD P/E RATIOS:* INDUSTRIALS
Industrials Sector (17.6)
Construction Machinery & Heavy Trucks (15.3)
30 30
Industrial Conglomerates (18.5)
Industrial Machinery (18.8)

25 25

20 20

2/15

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 18.
30 30
S&P 500 FORWARD P/E RATIOS:* INDUSTRIALS
Industrials Sector (17.6)
Aerospace & Defense (20.9)
25 Electrical Components & Equipment (19.6) 25
Environmental & Facilities Services (20.6)

20 20

2/15

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share using mid-month data.
Source: Thomson Reuters I/B/E/S.

Page 9 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/EsYardeni Research, Inc.
www.yardeni.com
 Information Technology Forward P/Es
Figure 19.
60 60
S&P 500 FORWARD P/E RATIOS:* INFORMATION TECHNOLOGY
55 Information Technology Sector (18.2) 55
Application Software (34.9)
50 50
Data Processing & Outsourcing (24.6)
45 IT Consulting & Other Services (14.6) 45
Systems Software (21.7)
40 40

35 35

30 30

25 25

20 20
2/15
15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 7 and 50 for all industries.
Source: Thomson Reuters I/B/E/S.

Figure 20.
60 60
S&P 500 FORWARD P/E RATIOS:* INFORMATION TECHNOLOGY
55 Information Technology Sector (18.2) Semiconductors (14.5) 55

Communications Equipment (15.4) Technology Hardware, Storage & Peripherals (13.1)

50 50
Semiconductor Equipment (11.7)
45 45

40 40

35 35

30 30

25 25

20 20
2/15
15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 7 and 45 for all industries.
Source: Thomson Reuters I/B/E/S.

Yardeni
Page 10 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/Es Research, Inc.
www.yardeni.com
 Materials Forward P/Es
Figure 21.
45 45
S&P 500 FORWARD P/E RATIOS:* MATERIALS

40 Materials Sector (17.1) 40

Aluminum (19.6)
35 Copper (9.8) 35

Steel (13.0)
30 30

25 25

20 20

2/15
15 15

10 10

5 5

yardeni.com
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
P/E capped at 5 and 40 for all industries.
Source: Thomson Reuters I/B/E/S.

Figure 22.
30 30
S&P 500 FORWARD P/E RATIOS:* MATERIALS
Materials Sector (17.1)
Diversified Chemicals (16.2)
25 Industrial Gases (22.1) 25
Specialty Chemicals (20.7)

20 20

2/15

15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Yardeni
Page 11 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/Es Research, Inc.
www.yardeni.com
 Telecommunication Services & Utilities Forward P/Es
Figure 23.
30 30
S&P 500 FORWARD P/E RATIOS:* TELECOMMUNICATION SERVICES

25 Telecommunication Services Sector (10.8) 25

Integrated Telecommunication Services (10.7)

20 20

15 15

2/15
10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Figure 24.
30 30
S&P 500 FORWARD P/E RATIOS:* UTILITIES

Utilities Sector (15.7)

25 Electric Utilities (15.0) 25

Gas Utilities (21.0)

20 20

2/15
15 15

10 10

yardeni.com
5 5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Price divided by 12-month forward consensus expected operating earnings per share.
Source: Thomson Reuters I/B/E/S.

Yardeni
Page 12 / February 19, 2018 / Stock Market Briefing: S&P 500 Sectors & Industries Forward P/Es Research, Inc.
www.yardeni.com
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