Argus

•

Jun 12, 2026

Market Outlook

Bullish

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Short

Summary

We have reviewed our sector allocations this month, and have adjusted our current sector Over-Weight, Under-Weight, and Market-Weight recommendations for the calendar third quarter.  Our multi-factor model includes a performance ranking system. It assigns points for monthly, quarterly, and YTD sector performance vs. the benchmark S&P 500; current sector P/E vs. 5-year P/E, with points awarded for discount to S&P 500 current vs 5-year P/E delta; two-year earnings growth, with points awarded for exceeding benchmark average and for EPS acceleration; relative performance to the sector group average; sector conviction (meaning BUY rating percentage per sector vs. total Argus BUY rating percentage); and PEG ratio, with points awarded or subtracted based on sector PEG ratios below or above the group average. This time, our process led to an upgrade of the Materials sector to Over-Weight from Market-Weight. The process has also resulted in three downgrades: Healthcare and Utility to Market-Weight from Over-Weight; and Consumer Staples to Under-Weight from Market-Weight. Our rebalancing process takes place four times a year, early in the months of March, June, September and December. Our current Over-Weight sectors are now Financial, Industrial, Materials, and Information Technology. Ou

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