XLC Stock Recent News

I am upgrading the Communication Services Select Sector SPDR ETF Fund from a hold to a buy, due to compelling valuation and technical indicators suggesting a near-term bottom. XLC's valuation is attractive at 17x forward earnings, significantly below its 5-year average, and its technicals indicate potential support around the $82-$83 zone. XLC is heavily weighted towards megacaps like GOOG, META, and NFLX, which command 35% of the portfolio, making their fundamentals and technicals crucial.

A second round of tariffs imposed on Canada, China and Mexico by President Donald Trump takes effect today. These ETF areas would be impacted.

These sectors and their related stocks and ETFs could be under the spotlight amid the escalating trade tensions.

With the AI race intensifying, concerns about AI monetization by U.S. tech giants are emerging fast.

Wall Street staged a rebound on Tuesday after the DeepSeek--ed sell-off.

The Communication Services Select Sector SPDR ETF Fund is poised for significant returns due to strong earnings growth, cheap valuations, and diversification. The communication services sector, led by Meta, Alphabet, and Netflix, is expected to benefit from increased internet usage, AI technology, and economic trends in 2025. XLC offers a balanced portfolio of growth and defensive stocks, with lower downside risk and higher risk-adjusted returns compared to peers.

As Big Bank earnings beat Wall Street's expectations, Charles Schwab chief investment strategist Liz Ann Sonders adds the financials sector (XLF) to her list of growth sectors: communication services (XLC), consumer discretionary (XLY), and tech (XLK). Despite her expectations that these four sectors will grow, the strategist tells Catalysts Co-Hosts Madison Mills and Seana Smith that only two sectors have an Outperform rating and outlines why sector-based investing may not be the best strategy.

The S&P 500 delivered a 23.31% return in 2024, but the communications services sector stole the spotlight.

State Street Global Advisors have revamped the weighting and rebalancing methodology for their 11 Select Sector SPDR® Funds, significantly impacting funds like XLK and XLC. The new system mitigates extreme rebalancing by capping weights at 24% and ensuring a more balanced distribution among top holdings. These changes aim to lower turnover and create smoother rebalancing, benefiting all Select Sector SPDR ETFs and potentially improving performance.

While the US stock market recovered recent losses, the risk of a downtrend is still high due to lofty valuations. However, the outlook for double-digit growth, rate cuts, and soft landing could drive market higher. As the market can swing either way, investment vehicles like the Communication Services Select Sector SPDR® ETF Fund could be the best option to deal with uncertainty.