Stock Market Sectors & Stock Sector Finder

stock sectors list

This sector covers six industries, including software, technology, hardware, semiconductors and IT services. Its market capitalization is more than double that of the industrials sector, which has more than twice as many underlying industries. This sector includes telecom companies that provide landline and cell phone service, entertainment and media companies, and .companies that provide social media services. Companies in the consumer staples sector focus on producing and selling items that people need, regardless of their financial position. For example, even during an economic downturn, most people will still have to buy staples like toilet paper and personal hygiene items.

All advisors are subject to a qualification process to be eligible for inclusion in the network. This sector includes companies that provide basic amenities and essential services like electricity, natural gas, water, sewage and waste disposal. These stocks tend to be some of the least volatile in the market and tend to pay steady dividends.

We may also receive payment if you click on certain links posted on our site. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site. Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise.

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Thus, Information Technology Sector companies such as Apple (AAPL) and Alphabet (GOOG) have replaced Exxon-Mobil (XOM) and other oil companies as Blue Chip leaders. We performed 10 years of data research to find out which stock sectors are the best for investors and which are the best stocks in each sector. A sector represents one part of the stock market and every sector has things that make it unique. As part of your investment research, consider how one sector may play off another and how that might translate to returns.

A well-diversified portfolio should have access to as many sectors as possible, and not concentrate too many funds into any single sector or related sectors. For example, if you wanted to diversify within specialty sectors, such as biotech, commercial real estate, or gold miners, you simply keep your allocation to 5% or less for each. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more.

What are the 24 industry groups of the stock market?

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Surprisingly, healthcare did not perform well over the last 2 and 5 years, but over 10 years, it has managed to outperform the market. For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded. For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages.

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Many people consider Consumer Discretionary Stocks economic indicators because their performance can reflect consumer demand. Others buy diversified companies such as Disney (DIS), Comcast Corporation (CMSCA), and AT&T (T). Determining what constitutes a Basic Material can be tough because sectors overlap.

  • Apple (AAPL -0.46%) and Microsoft (MSFT 1.12%) have been switching places at the top of the list of large U.S. stocks in the information technology sector.
  • From there, you can analyze how likely a market sector is to help you properly diversify your portfolio and reach your investment goals.
  • Some utility companies engage in more than one of these different subspecialties.
  • Goldman Sachs CEO David Solomon claims his bank employs 9,000 engineers, comprising one-third of its workforce.
  • Sector designations can vary depending on the fund’s investment criteria and overall objective.

Many value investors buy Communications Sector Stocks because some generate enormous amounts of what Warren Buffett calls float. Float is a steady stream of cash a company generates from subscription payments. Examining the ProShares Short Basic Materials ETF (SBM) is a great way to monitor the Basic Materials Sector. This Exchange Traded Fund’s benchmark is the daily performance Dow Jones US Basic Materials Index.

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Many investors love technology stocks because of the high rates of growth. Many people buy the so-called FANG and FAANG stocks because those shares offer high growth rates. Over the last ten years, the top 3 performing companies in the technology sector are  Broadcom +1799%, Adobe +1477%, and Cadence Design sundry income in final accounts Systems +1123%. With a market capitalization of $2.9 trillion, it comes in 4th place with a market-beating 980%. Some energy sector investors monitor events in the Middle East and other oil-producing regions. War and unrest in the Middle East have historically disrupted oil production, driving prices.

  • 2009 is committed to honest, unbiased investing education to help you become an independent investor.
  • Metabolic Syndrome is a precursor to serious diabetes and heart disease problems.
  • Analysts classify drugstore operators such as Walgreens (WBA) as healthcare companies.
  • As mentioned, some sectors may be more in favor during certain periods of the business cycle than others.
  • VPU invests in the stocks on the MSCI US Investable Market Index Utilities.

Energy Sector Stocks are companies that make biofuels such as ethanol and fuels from plants such as grain. The GCIS also lists companies that provide equipment and services for fossil fuel producers as energy stocks. The Energy Stock Sector includes any company that extracts or makes burnable fuels. Most Energy Sector Stocks are fossil fuel makers, including oil and gas companies and coal miners. Companies that own oil wells and oil refinery operators are energy sector stocks.

Learning about the 11 Stock Sectors can show you how the economy and the markets work. You would be well advised to avoid all Utility Sector ETFs, and none come close to matching the market performance. Analysts classify many Technology companies, including Ford (F) and Toyota (TM), as Consumer Discretionary Stocks. However, Ford and Toyota now invest heavily in Information Technology through their autonomous vehicle projects. Industrials manufacture machinery, tools, aircraft, weapons, and munitions. Analysts often classify transportation and logistics companies that serve the heavy industry as Industrial Stocks.

stock sectors list

Instead of pooling your eggs in a single basket, spread your investments across multiple stock sectors and industries to broaden your opportunities, while reducing losses triggered by market volatility. Companies in this sector provide products and services that enable individuals to communicate with each other on a global scale. This is a new sector that also includes former technology companies originally in the information technology sector. This sector includes telecommunication services and media and entertainment. Second, market sectors can be affected differently by market volatility and where the economy is in the business cycle.

The GICS coding system is integrated throughout the industry allowing for detailed reporting and stock screening through financial technology. Therefore fund analysis is used by fund managers to exclude specific investments. This often occurs with environmental, social, and governance (ESG) focused funds.

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Within the entire GICS structure, there are 11 sectors, 24 industry groups, 69 industries and 158 sub-industries into which all major public companies are categorized. It’s worth taking an in-depth look at stock market sectors to help guide your investment strategy. We’ll explore each stock market sector, walk through a few of the largest and well-known companies within each sector as well as various industry groups. You’ll likely recognize many of the names — the most well-known brands in the world tend to lead their respective stock sectors.

The downside of mutual funds include the lack of transparency when buying or selling since you don’t know the price until after the close. If you want to invest in stock market sectors,you have a number of options at your disposal. After researching the sectors you wish to invest in, you can select your investing method.