Argus

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Mar 17, 2026

Summary

We reviewed our recommended sector allocations this month, and based on the analysis have adjusted our current sector Over-Weight, Under-Weight, and Market-Weight recommendations for the calendar second quarter of 2026. Our multi-factor model includes a performance-ranking system, which 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 a 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. Our process has led to an upgrade of the Industrial sector to Over-Weight from Market-Weight and a downgrade of the Communication Services sector to Market-Weight from Over-Weight. For more details, see our latest Action Alert or our Portfolio Selector or Investment Portfolio Guide reports. 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 Financial, Healthcare, Industrial, Ut

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