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Analysts from BofA Securities published their small-cap (NYSEARCA:IJS) quantitative sector ranks.
In BofA’s Small/Mid-Cap Valuations report, analysts ranked sectors based on estimate revisions, relative valuation compared to history, price momentum, and BofA Global Research rating changes (investor sentiment).
“We found that the net proportion of upgrades-downgrades in a sector by our analysts is positively correlated with subsequent returns, particularly over the short term,” analysts said.
Financials (PSCF) ranked first and consumer discretionary (PSCD) second, up from the fourth place in January.
Consumer discretionary (PSCD), real estate, and materials (PSCM) saw the biggest improvements in ranks, moving from fourth to second, from sixth to fourth, and from seventh to fifth, respectively.
Lastly, communication services (PSCU) saw the biggest deterioration in the ranking. Last month, it was second, now it is sixth. Utilities, once again, ranked last.
These are February’s ranks, from highest to lowest: