S&P Equity Strategy Group Upgrades Info Tech Sector from Marketweight to Overweight

October 20 00:00 2011

NEW YORK, October 20 (RainbowNewsLine.com) – Analyst Sam Stovall of S&P’s Equity Strategy Group upgrades global info tech sector from Market Weight to Overweight.

In a research note published yesterday, the analyst mentions that despite the ongoing debate on the strength of global economic recovery, the global real GDP growth is expected to be 3% through 2012 that should be reflected in the info tech sector’s raising profitability.  S&P Capital IQ consensus estimates that S&P 500 Information Technology sector will see 16.5% EPS growth in 2011, followed by 9.7% increase in 2012. According to the analyst, this sector is cheaper compared to other economically sensitive areas, which is trading at 11.7x 2012 consensus EPS expectations.