Each week over at Bespoke Premium, we publish our Sector Snapshot, which is a multi-page report highlighting various charts and indicators for the ten S&P 500 sectors. One of the pages in the report features one-year charts of sector P/E ratios (trailing 12-month). Below is a snapshot of this page.
As shown, the Energy sector currently has the lowest valuation with a P/E of 10.65. Energy's P/E has fallen quite a bit recently since the sector has been weak. Telecom and the two consumer sectors have the highest P/E ratios. Consumer Discretionary is at 17.6 and Consumer Staples is at 16.66. Consumer Staples is obviously a defensive sector, so such a high valuation compared to the rest of the market is a red flag. Utilities also has a relatively high valuation given its defensive nature as well.
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