Sector Analysis

Before analyzing individual stocks, investors often ask a broader question: "Which sectors are strong right now, and which are weak?" This question sets a foundational filter for where investor attention should be directed before stock-level selection begins.

SmartSectorSkor provides a systematic answer. It functions as the sector-level extension of SmartSkor: the SmartSkor values and six factor scores for every Borsa İstanbul-listed stock are aggregated at the sector level into a single view. The investor obtains a sector-level picture of how sectors are performing and then drills down into individual stock selection.

The calculation method is transparent and direct:

• All stocks in the sector are identified.
• Each stock's SmartSkor is weighted by its market capitalization on Borsa İstanbul.
• The weighted average is computed; the result is the sector's SmartSectorSkor.

The same method is applied independently to each of the six factor scores. The Value score for a sector is the market-cap-weighted average of the Value scores of the stocks in that sector; the Profitability score is calculated the same way, and likewise for the other four factors.

Why Market Cap Weighting?

At the sector level, economic significance correlates directly with market capitalization. A signal from a 100B TL company and a signal from a 1B TL company within the same sector do not carry equal weight in describing the sector. Market cap weighting reflects more strongly the score of the larger players that represent the sector, and the sector average reflects the "economic reality" of the sector rather than the "typical investment opportunity."

With equal weighting, small-cap stocks could dominate the sector score — for example, a small leasing company in the Financial sector could overshadow the major banks. Market cap weighting prevents this distortion.

Score Scale — Continuous Number

SmartSectorSkor is a continuous decimal value between 1 and 10 — like 5.74 or 7.2. As with SmartFonSkor, we deliberately do not round this score to integers. A continuous score preserves the nuance between sectors with similar scores; a system that bins a sector at 6.8 and another at 6.2 both into the "6" bucket erases important information.

Update Frequency

Since each stock's SmartSkor is updated daily, SmartSectorSkor at the sector level is also recalculated daily. Changes in the scores of individual stocks within a sector, along with daily fluctuations in market capitalization, are reflected in the sector score in real time.

SmartSectorSkor uses 25 sectors. This sector list is deliberately differentiated from Borsa İstanbul's official three-way classification (Financial / Industrial / Services) and from BIST's sub-sector indices.

Sector definitions are based on labels commonly used in financial press and recognized by investors. Categories such as "IT/Technology," "REIT," "Banking," and "Insurance" are presented as separated categories rather than the consolidated BIST groupings. The rationale: when an investor asks "how are airline stocks performing?", they should see "Aviation" directly, not lost under "Services."

The 25 sectors are shown in the table below. The grouping is for visual convenience only; in the SmartSectorSkor calculation all sectors are treated equally.

Sector assignments are determined by TuneUp. The same company may appear in different sectors under different classifications; TuneUp's own assignment logic governs sector membership for SmartSectorSkor.

The Sector Analysis page consists of four components. Each answers a different question.

High SmartSkor Stocks by Industry

A bar chart showing how many stocks in each sector hold a SmartSkor of 9 or 10. Answers: "Where is opportunity density concentrated?" Toggle between Count/Percentage to view raw counts or proportions, and between By Score/A-Z to change sort order.

Purpose: see the distribution of opportunities at a glance. If IT/Technology has 14 high-SmartSkor stocks, that sector is a priority candidate for stock-level analysis.

BIST Market Cap by Sector

A donut chart showing the market capitalization distribution of sectors within Borsa İstanbul. Purpose: surface the structure of the market. Given that SmartSectorSkor is calculated using market cap weighting, this chart provides context for interpreting scores — scores for large sectors are driven by many large companies, while scores for small sectors rest on fewer companies.

Factor Analysis — Top Performing Sectors

Six cards showing the leading sector for each factor: Value, Momentum, Profitability, Attention, Fundamental Momentum, Investments. For investors building a strategy around a specific factor — for example, "I'm a value investor looking for the most attractive sector" — these cards provide direct direction.

Sector Overview Table

A detailed table containing all metrics for all 25 sectors: Market Cap, SmartSectorSkor, 1M Change, and each of the six factor scores. The investor can sort, search, and customize columns.

Purpose: deeper comparison. The three visual components tell the overall sector story; this table converts that story into numbers and provides a customizable tool.

* The full methodological definition of the 1M Change column will be detailed in a subsequent release.

SmartSectorSkor is a sectoral average, and the natural limits of sectoral averaging apply.

Within-Sector Heterogeneity

A sector with a high SmartSectorSkor does not mean all stocks within it have high scores. The sector score is an average; individual stocks within the sector may span a wide score distribution. The sector score directs the investor toward a starting point; individual stock selection should always be based on individual SmartSkor values.

Market Cap Concentration

Market-cap-weighted averages are sensitive to the scores of the largest companies in the sector. In the Financial sector, the scores of major banks dominate the sector average. This means the sector average may be misleading for investors focused on small companies. Individual stock scores should always be the primary reference.

Sector Classification Choice

The 25-sector list is derived from financial press and defined by TuneUp. It does not map one-to-one onto Borsa İstanbul's official classification. TuneUp's own logic governs sector assignments; the same company may appear in different sectors under different classifications.