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How Did Telecom and Energy Stocks Fare on August 12?

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Growth in the telecom and energy sector

The telecommunication and energy sectors showed positive returns on August 12. Six stocks out of nine telecommunication stocks were trailing upwards. Juniper Networks (JNPR) and Motorola Solutions (MSI) were trading at prices above all of their moving averages. Similarly, 40 out of 43 energy stocks rose, with the sector’s one-day return of 2.25% on August 12.

The Information Technology sector’s performance was also fine with 42 stocks out of 64 rallying upwards. Computer Sciences (CSC) returned 4% as of August 12, following Fidelity (FIS). It returned 8.73%. However, the healthcare, finance, consumer discretionary, and industrial sectors recorded nominal returns ranging from a 0.02% to 0.60% average return for the day.

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The above graph shows the upward movement of the telecommunication sector and the energy sector along with SPY. The telecom sector is represented by the SPDR S&P Telecom ETF (XTL) and the energy sector is represented by Select Sector SPDR ETF (XLE). XLE has been showing upward movement since August 7, 2015.

Fidelity has the highest returns of 8.73%

Fidelity National Information Services (FIS) registered the highest return of 8.73% among SPY’s component stocks on August 12. The implied volatility is 21.1 with a beta of 0.89. This is lower than the industry peers. As a result, it’s less risky. It settled at $70.75 on August 12. This is above its 100-day, 50-day, and 20-day moving average. It assures the upward movement of the stock. The PE (price-to-earnings) ratio was 24.81x—compared to the PE ratio of 27.97x for its industry peers.

Currently, the EBITDA (earnings before interest, tax, depreciation, and amortization) growth rate for the stock is 13%. The interest coverage ratio EBIT/interest is 7.53x. The last recorded EPS (earnings per share) registered was $2.38. The stock is stable, according to Moody’s outlook. It received eight “buy” and nine “hold” recommendations.

For more information on US equity performance, please visit our series European Economic Sentiment Rises, Russia Slips into Recession.

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