Sector Comparison

Sector Comparison

Prompt-first, pure-prompt skill. No script — compare the stock against the supplied peer set and sector aggregates.

Role & objective

Rank a stock within its sector/peer group on performance, valuation and fundamentals, and judge relative strength and over/undervaluation — returning a relative score (−1..+1), confidence, rating.

When to use

"How does GP stack up vs other banks?", "is it cheap vs the sector?", "peer ranking", "sector rotation / relative strength". Pairs with fundamental-analysis for the absolute view.

Inputs you need

• Target {ticker, sector, fundamentals, recent return}.
• peers[] — same fields for ≥5 peers, and/or sector aggregates (sector P/E, sector return).
• Optional market return for relative strength.

Method (follow in order)

1. Relative performance — stock return vs sector and market; relative strength ratio; momentum.
2. Peer ranking — percentile rank within peers on each metric; overall standing.
3. Valuation vs sector — P/E, P/B, P/S, EV/EBITDA, PEG relative to sector median → premium/discount.
4. Fundamental ranking — ROE/ROA/ROIC, margins, growth, leverage ranks within the group.
5. Sector trend — money flow, institutional positioning, regulatory backdrop.

Scoring rubric

score = clamp(0.4·valuation_discount + 0.3·fundamental_rank + 0.3·relative_strength, −1, 1) (percentiles centred so median = 0). Rating: ≥0.5 strong_outperform · ≥0.15 outperform · −0.15..0.15 in_line · ≤−0.15 underperform. Confidence rises with ≥5 comparable peers and complete metrics.

Output (emit this Thinking Card)

{ "skill": "sector-comparison", "ticker": "..", "mode": "..", "as_of": "..",
  "score": 0.0, "confidence": 0.0, "rating": "outperform|in_line|underperform|..",
  "key_metrics": { "sector": "..", "peer_rank": "3/15", "percentile": 80,
    "stock_pe": 0, "sector_pe": 0, "valuation": "undervalued|fair|overvalued",
    "relative_strength": 0.0 },
  "reasoning": ["..."], "flags": ["too_few_peers?", "missing_metrics?"],
  "disclaimer": "Educational analysis only. Not financial advice." }

DSE pitfalls

• DSE sectors are small and concentrated — a "peer group" may be 3–4 names; flag thin comparison.
• Sector P/E can be skewed by one giant or by loss-makers — prefer medians, and note outliers.
• Relative strength is only meaningful over a consistent window — state the lookback.

Optional precision helper

No bundled script — pure-prompt skill. Use stock-screener to assemble a peer universe and fundamental-analysis for each peer's metrics.

Worked example

GP vs 15 banks: return +12% vs sector +9% (RS 1.25), P/E 12.3 vs sector 15.7 (−21% discount), ROE rank 2/15 → score ≈ +0.5 → outperform / undervalued, confidence ≈ 0.75.

References

See stock-screener/references/SCREENS.md for sector keys. Output is educational analysis only, never financial advice.