Nikada
According to Citi Research’s The PULSE Monitor report, Financials (XLF) experienced a remarkable surge in upward revisions as a percentage of total monthly revisions in January.
Despite a decline in the upward revisions for the S&P 500 (SP500) as a percentage of total revisions month-over-month, dropping to 45.1% in January from 61.2% in December, this downward trend is in line with the 25-year seasonal average, as noted in the report. Citi Research’s report anticipates full-year 2024 consensus estimates to decline post the reporting of Q4 earnings, citing historical -5% revision as a common trend.
In particular, Financials (XLF), industrials (XLI), and utilities (XLU) emerged as the standout sectors with upward revisions at or above 50% in relation to the long-run January averages. Financials witnessed an impressive 53.2% upward revision rate, followed closely by industrials at 51.6% and utilities at 51.2%.
Furthermore, seven sectors including materials (XLB), communication services (XLC), real estate (XLRE), utilities (XLU), industrials (XLI), financials (XLF), and consumer discretionary (XLY) recorded upward revisions above seasonal averages. However, energy (XLE), health care (XLV), and information technology (XLK) trailed expectations with weaker revisions compared to seasonal averages at 34.7%, 34.1%, and 47% respectively.
