Can you guess the best and worst performing sectors during earnings season?

Investors looking to reposition their portfolios may want to read on.

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With earnings season over, investors may be reflecting on last month's results and significant share price moves.

This exercise can provide insight into which companies and sectors have momentum behind them. It can also identify companies that have potentially been oversold, or potential 'buy the dip' opportunities.

In terms of sectors, Macquarie Group Ltd (ASX: MQG) has identified one clear winner and one clear detractor during August.

Winning sector: Gold

Macquarie named ASX gold stocks the best-performing sector during the reporting season. While gold is not technically a sector in itself, and falls within the mining sector, it's a widely recognised subcategory. 

According to Macquarie, the gold sector rose 20.1% during August. The broker noted that this was significant, given that the gold price had risen just 5% during the month. 

However, the broker also said that "the growing expectation that the Fed would ease policy, plus the weaker US Dollar (-2%) both support the gold price and suggest there will be more earnings upgrades for miners."

Interestingly, small-cap gold miners outperformed large-cap gold miners. 

Vault Minerals Ltd (ASX: VAU), with a market capitalisation of $3.8 billion, was the standout performer. The company rose 41% during the month, pleasing investors. 

Back in July, Macquarie had placed a price target of 63 cents on Vault Minerals shares. At the time, they were trading at around 40 cents, suggesting 55% upside over the next 12 months. 

With Vault Minerals shares currently trading at 57 cents, the broker appears to have made a great call on this one, with the ASX gold miner well on its way to achieving this price target.

Detractor: Healthcare

Turning to the biggest disappointments of last month, Macquarie named healthcare as the worst-performing sector in August. According to the broker, the healthcare sector fell 12.9% in August. 

ASX 200 giant CSL Ltd (ASX: CSL) dominated earnings season headlines, after its shares fell 17% on its FY25 earnings report. This was the biggest one-day decline since the company listed in 1999.

Investors appeared less than impressed with its decision to demerge its vaccine business, Sequris. 

However, several brokers believe the company was oversold and represents a buying opportunity. 

CSL shares are going for less than $210 at the time of writing. This is below Ord Minnett's price target of $258, Macquarie's price target of $295.90, and Bell Potter's price target of $240.

Experts have also highlighted that CSL shares are currently trading at around 20 times forward earnings, which is materially below its long-term average of 32 times earnings.

While CSL may have made the biggest headlines due to its size, another ASX 200 healthcare stock fell even further during the month. Specifically, Telix Pharmaceuticals (ASX: TLX) dropped 29% in August. Behind the majority of this fall was a setback from the US Food and Drug Administration (FDA).

Conversely, Ansell Ltd (ASX: ANN) was a bright spot in the healthcare sector, rising 13% during the month. 

Over the past few months, the company had been rocked by tariff concerns. In fact, earlier this year, Macquarie named Ansell as the most tariff-affected stock in its coverage universe. However, investors appeared pleased by the company's FY26 guidance beat, according to Macquarie.

Foolish Takeaway

With earnings season done and dusted, ASX investors may be reviewing their current portfolios. This can be an opportune time for investors to make changes by selling companies they've lost conviction in or buying attractive companies they believe have been oversold. Those undergoing this process may find it useful to reflect on the best and worst performing sectors during August.

Motley Fool contributor Laura Stewart has positions in Ansell and CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Ansell, CSL, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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