Morgan Stanley says the capital goods sector is more attractive after valuation declines
智通财经2026/10/05 10:46Morgan Stanley strategists stated that since early summer, valuations of U.S. stocks have dropped significantly, and with earnings growth remaining strong, the investment appeal of certain market sectors is increasing. The team led by Michael Wilson noted that this correction has created a “better investment environment” for industries tied to the economic cycle with still robust fundamentals. Among them, the capital goods sector stands out, with earnings forecasts being raised among the highest of all industries. In a report on Monday, Wilson stated, “Following recent valuation adjustments, some capital-intensive sectors are starting to appear more attractive.” Since mid-August, the rally in U.S. stocks has slowed. Rising bond yields have offset the boost from a strong earnings season, and as companies begin to report their third-quarter results in the coming weeks, the market expects earnings to remain strong. According to Bloomberg Intelligence, analysts anticipate that S&P 500 constituents’ third-quarter earnings will increase by 25% year-on-year, after a 34% gain in the second quarter. Demand for artificial intelligence, record capital expenditures by cloud giants, and a strong macroeconomic environment have all contributed to earnings growth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Elon Musk said his company may find a better way to manufacture chips.
BP is safely restarting production at the Na Kika and Thunder Horse platforms.
Crypto prices
More
