Like plants that grow in different seasons, different sectors thrive at different times. Thus, if you are looking forward to investing in industries that will perform well this season, the following sectors are worth considering.
- Consumer goods
- Financial services
- Electric vehicle
Note that The Ukrain-Russia war and high inflation have made this season barren. So it calls for some considerations before you decide where to put your money. Below are the seven sectors that are worth investing in together with the Top 5 Sectors for Q4 2022.
The energy sector remains one of the sectors to beat if considering investing. Stocks of most companies in this sector have performed well and continue doing so, thanks to the war in Ukraine and the rising fuel prices. ExxonMobil is at the top of the list, with a market cap of $350 billion. The company shares have risen by more than 40% this year. This month alone, the share prices went up by 71%.
Second, on the list is Chevron. The company has registered impressive gains, which have helped its share prices go up by 20%.
The reasons for such sterling performance revolve around the rising demand for oil, the Ukraine-Russia war, and recovery from COVID-19-related lockdowns.
2. Electric Vehicle Sector
As the world fights the side effects of environmental pollution, governments and private sectors have refocused their energies on burning less fossil fuel. The Indian government, for instance, plans to expand electric vehicle penetration into its market. Also, it plans to increase the number of 2-3 wheelers that use electricity by 80%.
Although not all drug makers are performing well, quite a few have seen their share prices rise. For instance, Vertex pharmaceutical stands out from the crowd. The company’s shares have risen by more than 30%. Bristol Myers Squibb is another success story. This year, the company’s shares have jumped by more than 25 %.
One of the reasons why companies’ share prices have gone up is that investors treat them as safety havens. The public knows that physicians will continue prescribing drugs regardless of the level of interest and inflation.
Vertex pharmaceutical and Bristol Myers Squibb feature high on the list because they have unique catalysts. For instance, Vertex’s VX-147 is undergoing tests to treat APOLI-mediated disease. The drug has won FDA breakthrough designation. In addition, the drug has also won the European Medicine Agency priority medicine designation.
The IT sector continues to grow in revenue and is expected to reach $350 billion by 2027. Cloud computing, AI and analytics, and eCommerce are expected to be at the forefront.
5. Tech Sector
The tech sector boasts a range of companies offering almost everything. There is the computer hardware, cloud pioneers, social media platforms, and microchip developers. Investors are aware that the sector will shape and complement other sectors, so it will likely continue flourishing in the future.
6. Financial Services
The financial sector is thriving since all others sectors depend on it. The sector consists of banks, insurance, credit and debit card providers, and many more. Most financial sector companies are experiencing a boom because they have benefited from inflation and rising rates. The sector continues to attract long-term investors because of its prospects.
7. Consumer Goods
Consumption of goods has held steady despite the rising cost of living and inflation. So companies that buy and sell consumables have seen their stock prices increase. Consumers are cutting spending on travel and leisure and redirecting their finances to purchasing consumer goods. This implies that everyone is expecting the consumer market to remain profitable during and after the financial turmoil the world is going through. Companies worth investing in include Costco, Pepsi, Walmart Inc., Settle SA, Procter & Gamble Co, and Coca-cola.
Even so, as an investor, you must be aware of market sentiments before investing. Thus, the energy, health, and consumer goods sectors are stable and poised to grow. So investing in companies from these sectors could be a wise decision.