The S&P 500’s trailing 12-month P/E ratio got down into the low 15s at the bottom in late December, but we’ve seen huge P/E expansion as the market has rallied back.  As of this afternoon, the S&P’s trailing 12-month P/E sits at 18.61.  Even still, that’s well below readings in the 20s that were seen for a number of weeks in 2018.

Below we show one-year P/E ratio charts for major S&P 500 sectors.  Since the December lows, we’ve seen P/E expansion in every sector, but the one that stands out the most is Utilities.

We went into detail on extended valuations for the Utilities sector in yesterday’s Chart of the Day for members, but you can see the spike up to 19.80 in the one-year chart for Utilities below.  At 19.80, only Technology, Health Care, and Consumer Discretionary have higher trailing 12-month P/E ratios than Utilities right now.

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