How the 11 GICS Sectors Work, and Why Sector Matters as Much as the Company

Every, publicly, traded, company, falls, into, one, of, 11, standardized, sectors, set, by, the, Global, Industry, Classification, Standard, (GICS)., This, framework, was, developed, by, MSCI, and, S&P, and, is, used, consistently, in, the, investing, world., It, applies, to, everything, from, index, funds, to, research, reports, to, sector, ETFs., The, 11, sectors, are:, Information, Technology,, Health, Care,, Financials,, Consumer, Discretionary,, Communication, Services,, Industrials,, Consumer, Staples,, Energy,, Utilities,, Real, Estate,, and, Materials., Each, sector, is, divided, into, industry, groups,, industries,, and, sub-industries, for, more, detailed, classification.

Sector, classification, is, more, than, just, a, label., It, defines, what, "normal", looks, like, for, a, company., A, gross, margin, that, might, spell, disaster, for, a, software, company, (which, usually, has, 70-80%+, gross, margins), could, be, perfectly, healthy, for, a, grocery, retailer., Grocery, stores, typically, operate, with, much, thinner, margins, as, a, normal, part, of, their, business,, not, as, a, sign, of, weakness.