Credit Suisse bets on industrial stocks in 2019 despite poor market show

Brokerage says sector has underperformed the market the past three years, even though it has been posting good earnings growth; metals, energy, private banks are other hot sectors

Credit Suisse is betting on industrial stocks for 2019. The sector has underperformed the market in the past three years, despite posting good earnings growth, says the brokerage. Industrial stocks are those fortunes are tied to construction and manufacturing.

“Industrials have underperformed the market by 48 per cent this decade. Over the past three years, they have continued to underperform despite good earnings growth. The P/E multiples for the industrials sector have been unchanged even though the broader market sharply re-rated. Given that this is still an early stage of the investment cycle and current levels of investment should be sustainable