Citi stays overweight Communication Services
Andrii Yalanskyi
The global research team at Citi held its current Overweight position in the Communication Services sector as Wall Street heads into the start of Q4. Pulling apart the market segment, Citi is overweight media & entertainment while also being underweight telecommunication services.
The financial institution stated: âThe Media & Entertainment OW is predicated on low macro correlations, improving relative performance, reinforced by improving confidence in fundamental drivers.â
Citi also added, âConversely, the more traditional Telecommunication Services moves to UW. Earnings and margin concerns are growing. With this sectorâs inherently high debt, we are incrementally focused on credit conditions.â
Moreover, Citi also grouped together a handful of its Buy and Sell rated stocks by ETR. Some stocks included household names such as Meta Platforms (NASDAQ:META), Verizon Communications (NYSE:VZ), and Netflix (NASDAQ:NFLX). See the complete list below:

For reference:
ETR refers to the estimated total return. Regarding the rating system, 1 is Buy, 2 is Hold, 3 is Sell - 1H is less conviction Buy than 1 but more than 2.
Market participants can also access exposure to the Communication Service space through the use of exchange traded funds. Listed below are a handful of funds along with their year-to-date performance.

Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) +33.8%.
Vanguard Communication Services ETF (VOX) +25.9%.
iShares Global Comm Services ETF (IXP) +23.1%.
Fidelity MSCI Communication Services Index ETF (FCOM) +25.8%.

Citi also provided their analysis on the Info Tech, Health Care, and the Real Estate sectors as well.

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