A company’s general area of business. Morningstar divides stocks into 12 sectors according to their primary business, grouped into three larger “super-sectors”. The Software, Hardware, Telecom, and Media sectors make up the Information group; Health Care, Consumer Services, Business Services, and Financial Services make up the Service group; and Consumer Goods, Industrial Materials, Energy, and Utilities make up the Manufacturing group. Because sectors can differ greatly in their characteristics, comparing a stock with its sector rather than the market as a whole is generally a better way of putting it in the proper context.
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