Every week we give you the quick (and sometimes dirty) recap of the week in stocks, in hopes that it will inspire you to keep a pulse on the market, and make some strategic moves in the investment space (go make that bank).
The Global Industry Classification Standard (GICS) dictates how these broad sectors are presented and which sub-sectors and industries fall under specific sectors. In case you’re curious, there are 11 sectors that are broken down into 24 industry groups, 68 industries, and 157 sub-industries. It follows a coding system. The GICS coding system is integrated throughout the industry, allowing for detailed reporting and stock screening through financial technology.
Since we don’t expect everyone to be versed in what all of these sectors entail (trust me, we all need a little help in this department), we’ve thrown together a quick guide to help you nav. the market.
Energy
Includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, and refining. The energy industry also includes integrated power utility companies such as renewable energy and coal.
Materials
Includes companies involved in the discovery, development, and processing of raw materials. The sector includes companies engaged in mining and metal refining, chemical products, and forestry products.
Industrials
Get ready, this one’s a doozy: Industrials make up all companies centered around the manufacture and distribution of capital goods, including aerospace & defense, construction, engineering & building products, electrical equipment and industrial machinery. The provision of commercial services and supplies, including printing, employment, environmental and office services. The provision of transportation services, including airlines, couriers, marine, road & rail and transportation infrastructure.
Consumer Discretionary (Cons Disc)
Think your non-essentials…or in my case essential, but I suppose less so than, say, chocolate. These include durable goods, apparel, entertainment, autos, and leisure.
Consumer Staples (Cons Stpl)
Your more ‘essential’ goods like food, beverage, household goods, and feminine hygiene. Ironic, because it also includes ‘sin stocks’ like alcohol and tobacco.
Health Care
All companies that specialize in products or services related to health and medical care.
Financials
Yay our favorite! This sector includes companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, real estate investment trusts (REITs), as well as companies engaged in real estate management & development)
Information Technology
Basically anything tech-centric. Here’s the hefty definition: Technology Software & Services, including companies that primarily develop software in various fields such as the Internet, applications, systems, databases management and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly Technology Hardware & Equipment, including manufacturers and distributors of communications equipment, computers & peripherals, electronic equipment and related instruments; and thirdly, Semiconductors & Semiconductor Equipment Manufacturers.)
Telecommunication Services
Companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth and/or fiber optic cable network.
Utilities
Love to hate them, these companies are considered electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power.
Real Estate
A favorite topic: this sector contains all REITs, with the exception of Mortgage REITs, (which remain in the Financial sector). Additionally, the sector includes Real Estate Management and Development services.
