But the S&amp;P 500's forward P/E had declined to 21.4 at Tuesday's close, even though the index had gained 8% for 2026, because weighted earnings estimates had increased more quickly than weighted share prices. And despite the index's high concentration in a small number of companies, forward P/E ratios were down for seven of its 11 sectors.
The S&amp;P 500 sectors are listed in alphabetical order with the full index at the bottom. All sectors trade at lower forward P/E than they did at the end of 2025, except for the consumer staples, Industrial, real estate and utilities sectors.
The energy sector has shown the largest gain this year, which is hardly surprising given that the price of continuous front-month contracts for West Texas Intermediate crude oil (CL00) was up 78% for 2026 as of early Wednesday. The sector is among the most expensive relative to its five-year forward P/E valuation. But its forward P/E has declined to 14 from 16 at the end of 2025.
The financial sector is down 6% for 2026, and its forward P/E has declined to 14.4 from 16.3 at the end of December. This sector is the least expensive one relative to its five-year average forward P/E, as shown in the table.
So let's look at our list of 20 earnings-season winners again, leaving them in the same order, this time showing current forward P/E ratios and those as of Dec. 31, to see how the &#34;P&#34; and the &#34;E&#34; have moved. The price changes exclude dividends.
Sandisk, which tops the list, illustrates how some companies' forward P/E ratios have come down. The share price was up more than fivefold for 2026 through Thursday, but the rolling 12-month consensus EPS estimated had increased even more quickly.
Click on the tickers for more about each company.
Read: Tomi Kilgore's detailed guide to the information available on the MarketWatch quote page
-Philip van Doorn
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05-13-26 1036ET

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The S&P 500's forward P/E ratio has decreased to 21.4, despite an 8% gain in 2026, as earnings estimates rose faster than share prices. Seven of the 11 sectors saw declines in forward P/E ratios, with the energy sector experiencing the largest gain this year. The financial sector is down 6% for 2026 and is the least expensive relative to its five-year average forward P/E. A list of 20 stocks shows how their forward P/E ratios have changed, with Sandisk's share price increasing significantly while its forward P/E ratio has decreased.

- The S&P 500's forward P/E ratio decreased to 21.4, despite an 8% index gain in 2026, due to faster growth in earnings estimates compared to share prices.  
- Seven of the 11 sectors within the index reflected lower forward P/E ratios, with the energy sector seeing significant gains amidst a 78% rise in WTI crude oil prices this year.  
- The financial sector experienced a 6% decline and has the lowest relative forward P/E, indicating a potential opportunity in comparison to its five-year average.

20 stocks in the S&P 500 of companies with -2-