Preliminary Sign of Vulnerability for Energy Sector

After several months of maintaining a ranking among the most attractive sectors, the energy
sector has dropped out of the top-ranked group, due primarily to lower technical scores. Given
the typical volatility in our rankings we will watch to see if this directional change holds over the
coming weeks. The business services sector has also fallen out of the top-ranked group as both
fundamental and technical outlook metrics have weakened. Improved catalytic properties have

helped the aerospace/defense and consumer staples sectors to break into the top 5 group. Like-
wise, higher catalytic scores have resulted in the industrial products sector breaking out from the

bottom 5 group. See Tables 5 and 6 for top-ranked names from the most attractive sectors and
bottom-ranked names from the least attractive sectors.

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