In this article, we will go through the market’s hottest sectors right now and the best stocks to buy now.
The Dow Jones Industrial Average is at an all-time high, which is great news if you’ve got money in the market.
But if you’re looking for a new investment opportunity, it might feel like your only options are dogs.
Don’t worry, though. We’ve researched for you and found the five hottest sectors of the market.
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Hottest Sectors of the Market
There are so many great investment opportunities right now that your options are limited.
With so many great stocks and ETFs to choose from, you’ll have to do some serious research to find the right ones for you.
That’s where we come in.
We’ve compiled a list of the five hottest sectors of the market, along with their absolute best stocks to buy right now.
What’s Hot in Telecommunications
Following the internet, telephone companies and cable providers are some of the hottest stocks on Wall Street.
Many investors are worried that these big-data types of companies, known as “data-generating” companies, are at risk because of fears that their market will be dominated by the big tech stocks — like Amazon and Google.
But we think the idea that one company will be able to monopolize all the world’s data is a fallacy.
We believe that’s why tech stocks are tanking right now.
There’s nothing stopping a smaller company — one without the over-the-top price tag that Amazon and Google have — from making a strong move into the industry and becoming a global leader.
Tech Giants in the Healthcare Sector
There’s no escaping the growing wave of Amazon and Google in the tech sector. But many investors still haven’t woken up to the fact that healthcare companies will be vital players in the coming years.
CVS Health Corporation (NYSE: CVS ) is one such example. The company currently operates the second-largest pharmacy chain in the U.S. with 2,700 locations. And with its new effort to streamline the way you purchase medications, CVS is an obvious choice as a solid pick for the healthcare sector.
But don’t let the low valuation fool you — it’s still one of the most robust picks in the space. Analysts expect CVS to report $9.93 per share in earnings this year and $10.23 per share in 2019.
CVS is up almost 10% since mid-December and is trading at just 11.5 times earnings.
Financial Services in Retail
Financial services were a bright spot in the first quarter when they helped drive the Dow over its all-time high.
Large financial companies including Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK) and Senseonics Holdings (SENS stock), are all looking at soaring profits because the rising markets have pushed interest rates higher.
Those higher interest rates provide banks with more of a return on assets and make it easier for them to lend out more money.
The gains in financial services have benefited REITs, particularly the real estate investment trusts that own properties such as shopping centers.
For example, according to research from Bespoke Investment Group, real estate investment trusts that own strip malls are up 19.5% for the year through June 12.
Investing in Entertainment
Pixar Pictures Corp. (NASDAQ: PIXRF ) produces computer-animated films for various audiences. The stock gained 12% in March and has already skyrocketed 85% year-to-date. Shares are trading at $111.76.
I have a friend who’s been an executive at Pixar for the past several years. She enjoys the work and keeps an optimistic outlook for the company. But to keep her calm in the midst of this bull market, she keeps a close eye on the next quarter’s earnings report.
She buys new shares of Pixar every time she hears they’re going to report earnings. And when they report good news, it’s like a huge weight has been lifted off her shoulders.
What matters most is the long-term outlook, and this company’s in it for the long haul.