Top-Ranked Sector ETFs & Stocks To Buy For 2019

After a bumpy ride in 2018 and a lackluster start to 2019, the Wall Street rebounded strongly following some positive news. In particular, robust December job data and Powell’s comment that the Fed is not in a hurry to raise rates this year instilled optimism into the market amid the second-longest government shutdown.

The American economy has added stronger-than-expected 312,000 jobs in December — the biggest gain in 10 months — while unemployment jumped to 3.9%, the highest rate since August.

Signs of progress in U.S.-China trade talks also boosted demand for riskier assets. Additionally, the Fed minutes, which indicated caution on future interest rate hikes, helped to boost sentiment. Notably, the Dow Jones and S&P 500 have been on their longest winning streak since Sep 14 with four consecutive days gain.

Though the news flow is driving stocks higher, slowing global growth, geopolitical tension, uncertainty in trade deal and political instability will continue to weigh on the market. The World Bank slashed global growth forecast by 0.1 percentage points to 2.9% for this year, citing slowing growth in trade and investment and rising interest rates, which sapped momentum especially in emerging markets.

Against such a backdrop, investors could be well served by ETFs and stocks from top-ranked 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.

A top Zacks Industry Rank means that more stocks within that group are seeing upward earnings estimate revisions. Since an industry is a group of stocks in a similar business, this is the perfect way to size it up.

The Zacks Industry classification divides the business world into 16 sectors comprising 60 medium or M-level industries and 265 or X-level industries. We rank all 26s X-level industries based on the earnings outlook of the constituent companies into two groups: the top half (i.e., industries with the best average Zacks Rank) and the bottom half (the industries with the worst average Zacks Rank).

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Disclosure: 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 specific ...

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