Further Tests of the Validity of the Industry Approach to Investment Analysis

An Analysis of Relative Industry Price‐Earnings Ratios

“…These results were confirmed in Brigham and Pappas [3], in Reilly and Drzycimski for different types of market periods (rising and declining) [25], and also by Tysseland [27]. Such findings make the job of the industry analyst much more difficult.…”

“…Cheney examined numerous stocks in a selected number of industries and concluded that there was substantial dispersion within alternative industries [5]. These results were supported by statements in the Brigham and Pappas study (31, and also by the Tysseland analysis [27]. This intra-industry dispersion means that firm analysis is necessary after industry analysis.…”

Empirical Evidence Of Sector Rotation: A Case Study Of Old Economy Industry And New Economy Industry

“…Thus, it is worthwhile for investors exploring different industries likely to perform well in the future. As regards a question of the consistency of industries performance over time, Mel Tysseland (1971) has not found the conclusive evidence on the consistent time-series performance for selected industries. Reilly and Drzycimski (1974) re-examined the issue of performance persistence.…”