Jefferies Upgrades Tech to Overweight (XLK)

August 22, 2016 7:44 AM EDT
Get Alerts XLK Hot Sheet
Price: $49.47 -0.38%

Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
Trade XLK Now!
Join SI Premium – FREE

Get the Pulse of the Market with's Pulse Picks. Get your Free Trial here.

Jefferies upgraded the Information Technology sector from Market Weight to Overweight following a strong earnings season.

Strategist Steven DeSanctis highlighted:

  • The second quarter reporting season was solid for the sector with nearly five times as many earnings beats than misses.
  • Even though overall valuations are stretched, the group looks reasonable with four of the six measures we track trading below their long-term averages.
  • The revision ratio remains strong with more upward revisions than downward and 2016's earnings and sales estimates seem awfully low so we can expect to see lots of beats going forward.
  • If the Fed finally raises rates in December, this group will benefit.
  • M&A activity is running at a record pace in small caps and over 30% of all deals are occurring in this sector. We think this trend continues.

Related ETFs:

Technology Select Sector Spdr Fund (NYSE: XLK)

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, ETFs, Upgrades

Related Entities

Jefferies & Co, Earnings

Add Your Comment