General information
We use the S&P sectors to sort the companies into 11 different sectors. These sectors are known as the Global Industry Classification Standard (GICS). The GICS was created in 1999 by Standard & Poor’s (S&P) and Morgan Stanley Capital International (MSCI). It is used by the majority of the professional investment management community. More than 95% of the world’s listed market capitalization has been classified by GICS.
The GICS sorts companies into sectors based on their primary business activity. Multiple factors are considered, such as a company’s main source of revenue, earnings analysis and market perception. The GICS uses a refined system to sort companies into 11 sectors. These are further divided into 24 industry groups, then into 68 industries, and finally into 157 sub-industries. For the purpose of the database, we only use the 11 fundamental sectors.
Sector - Industrials
The sector industrials contains a very wide range of companies. No less than 14 different industries fall under this sector, such as Aerospace & Defense, Construction & Engineering, Electrical Equipment, Machinery, Commercial and professional services, transportation, airlines, marine, etc. Companies in this sector mostly manufacture equipment or components needed in specific industries. But they also trade and distribute equipment and products. They provide printing and office services, maintain office buildings, provide security and protection and take care of human resources and employment services. They also provide transportation of both goods and people.
Examples of companies in this sector are big names like Delta Air Lines, FedEx Corporation and Boeing Company.