4 ETFs & Stocks To Buy This Summer From Top Sectors

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With summer kicking off, the U.S. stock market is nearing all-time highs and expectations are of its hitting new peaks. This is especially true as the economy is strongly recovering from the pandemic lows with millions of Americans fully vaccinated and pandemic restrictions being rolled back.

Additionally, huge infrastructure spending as well as massive fiscal and monetary stimulus is instilling strong confidence in the economy. The combination of factors is leading to pent-up demand for all types of products and services in the economy. The latest data added to the strength as U.S. manufacturing activity hit a record-high in May for the second straight month supported by stronger expansion in output and new orders. Meanwhile, the core personal consumption expenditures index increased by 3.1% in April from a year ago, sharply higher than the March reading of 1.9% and marking the highest reading since 1992.

Further, the travel industry, which was the worst hit during pandemic, is expected to recover this summer as more Americans return to the road. According to TripAdvisor (TRIP - Free Report), about 67% of Americans expect to travel this summer, with 74% staying in the United States. The outdoor activities that American families are eyeing this summer include beach day, socially distanced barbecue day, camping trip, and pool day. The rebound in travel should support stock rally.

However, concerns over rising inflation and resurgence in coronavirus cases in Asia, most notably in India might result in volatility.

Against such a backdrop, investors should look at the ETFs and stocks from the top-performing sectors.

How to Find the Top-Performing Sectors

While identifying the top-performing sector is a daunting task, the Zacks Industry Rank makes this process simpler. The Zacks Industry Rank is determined by calculating the average Zacks Rank for each stock in the industry and then assigning a rank to it. First, we selected the best industries that have a top Zacks Rank.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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