3 Sectors With the Largest Fair Value Increases
While few companies’ fair value estimates increased, some sectors saw particularly strong gains.
Corporations saw the rate of increase in their fair values slow as basic materials, energy and real estate sectors had the most businesses rise in value, according to a review of fourth-quarter earnings by Morningstar analysts.
The average fair value estimate of a company increased by 2.6%, down from 3.3% in the previous quarter and 5.6% from the prior year. Basic materials and energy firms gained on an uptick in near-term commodity prices, and the real estate sector advanced as occupancy rates increased at a faster pace.
Jakir Hossain does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.