# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What is a Sector?

A sector is the general sphere in which a company does business. Because sectors can greatly differ, evaluating a stock within its sector puts its return in better context compared with the larger market.

Morningstar divides stocks into 11 equity sectors. These can be grouped more broadly by their sensitivity to the economic cycle. The Communication Services, Energy, Industrials, and Technology sectors make up the Sensitive Super Sector; Healthcare, Consumer Defensive, and Utilities make up the Defensive Super Sector; and Basic Materials, Consumer Cyclical, Financial Services, and Real Estate form the Cyclical Super Sector.

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