Sector Views: Monthly Stock Sector Outlook
September 26, 2025
Our outlook on the 11 S&P 500 equity sectors.

Schwab Sector Views is our six- to 12-month outlook for stock sectors, which represent broad sectors of the economy. The Schwab Center for Financial Research (SCFR) combines a factor-based approach with a market and economic assessment to determine the ratings. For the basics on sectors, please see Stock Sectors: What Are They? How Are They Used?
We maintain a Marketperform rating on all sectors, a position we adopted in April after the White House unveiled a global tariff policy that continues to evolve. Until there is more stability and clarity on trade policy it is challenging to assess the potential impact on sectors, and we are cautious about asserting an Outperform or Underperform view on any sector.
Sector ratings
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Rating(vs. S&P 500)
- Rating change vs. last month?
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Financials>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>-
Energy>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>-
Industrials>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>-
Materials>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>-
Utilities>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>-
Communication Services>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>-
Real Estate>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>-
Consumer Staples>Rating(vs. S&P 500)MARKETPERFORM>Rating change vs. last month?NO>-
Health Care>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>-
Consumer Discretionary>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>-
Information Technology>Rating(vs. S&P 500)*MARKETPERFORM*>Rating change vs. last month?NO>Factors behind the stock sector ratings
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- Value
- Sentiment
- Growth
- Stability
- Quality
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Financials>ValuePOSITIVE>SentimentNEUTRAL>GrowthNEUTRAL>StabilityNEUTRAL>QualityNEUTRAL>-
Energy>ValuePOSITIVE>SentimentNEUTRAL>GrowthPOSITIVE>StabilityNEGATIVE>QualityNEGATIVE>-
Industrials>ValueNEUTRAL>SentimentNEUTRAL>GrowthNEUTRAL>StabilityNEGATIVE>QualityNEUTRAL>-
Materials>ValueNEUTRAL>SentimentPOSITIVE>GrowthPOSITIVE>StabilityNEUTRAL>QualityNEGATIVE>-
Utilities>ValuePOSITIVE>SentimentPOSITIVE>GrowthPOSITIVE>StabilityNEUTRAL>QualityNEGATIVE>-
Communication Services>ValueNEUTRAL>SentimentNEGATIVE>GrowthNEUTRAL>StabilityNEUTRAL>QualityNEUTRAL>-
Real Estate>ValueNEUTRAL>SentimentPOSITIVE>GrowthNEGATIVE>StabilityPOSITIVE>QualityPOSITIVE>-
Consumer Staples>ValueNEUTRAL>SentimentNEUTRAL>GrowthNEUTRAL>StabilityPOSITIVE>QualityNEUTRAL>-
Health Care>ValueNEGATIVE>SentimentNEUTRAL>GrowthNEGATIVE>StabilityPOSITIVE>QualityNEUTRAL>-
Consumer Discretionary>ValueNEGATIVE>SentimentNEGATIVE>GrowthNEUTRAL>StabilityNEUTRAL>QualityPOSITIVE>-
Information Technology>ValueNEGATIVE>SentimentNEGATIVE>GrowthNEGATIVE>StabilityNEGATIVE>QualityPOSITIVE>Sector performance
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- Weighting in S&P 500 (%)
- Trailing six-month performance (%)
- Trailing 12-month performance (%)
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Communication Services>Weighting in S&P 500 (%)9.6>Trailing six-month performance (%)7.3>Trailing 12-month performance (%)20.9>-
Consumer Discretionary>Weighting in S&P 500 (%)10.6>Trailing six-month performance (%)-3.7>Trailing 12-month performance (%)21.7>