LIVE MARKETS-Price momentum may not persist in industrials

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PRICE MOMENTUM MAY NOT PERSIST IN INDUSTRIALS

Industrials are the best-performing S&P 500 index sector so far this year, but recent price momentum may not persist, according to Brian Belski, chief investment strategist and leader of the Investment Strategy Group at BMO Capital Markets.

"Sector fundamental trends continue to lean slightly negative, he writes in a note this week.

But selectivity is key, he says.

"We would...recommend a growth at a reasonable price (GARP) strategy as an opportunistic way to gain Industrial exposure in the current environment." He says the firm maintains a "market weight" view on the sector.

"Revisions breadth has improved, but earnings growth remains weak while relative valuation is slightly above average," Belski writes.

The S&P 500 industrials sector .SPLRCI is down 0.4% on the day and up 8.4% year-to-date. The S&P 500 .SPX is up just over 2% for the year so far.

(Caroline Valetkevitch)

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