Sector Valuation | Basic Materials & Consumer Cyclical

Value Referee wrote a column · Dec 6, 2021 15:15

We reviewed Sector Valuation & Weekly Performance on last weekend. And starting from today, we will look into each sector!

Companies can be divided into several groups - sectors - according to their business activities:

Sector Valuation | Basic Materials & Consumer Cyclical

Divided By Market Cap

Today we will talk about Basic Materials and Consumer Cyclical, they are cyclical stocks.

1. Basic Materials

This sector is made up of businesses from discovery, development, and processing of raw materials.

Within this sector are the companies that supply most of the materials used in construction. That makes the companies and their stocks sensitive to changes in the business cycle. They tend to thrive when the economy is strong.

Companies in this sector include $Exxon Mobil (XOM.US)$, $Chevron (CVX.US)$, $Schlumberger (SLB.US)$, $DuPont (DD.US)$, $Vulcan Materials (VMC.US)$ and $Steel Dynamics (STLD.US)$.

Source: gurufocus

Industries in Basic Materials

2. Consumer Cyclical

This sector includes retail stores, auto and auto-parts manufacturers, restaurants, lodging facilities, specialty retail and travel companies.

Companies in this sector include $Ford Motor (F.US)$, $McDonald's (MCD.US)$ , and $Amazon (AMZN.US)$.