STOCK SECTORS

The stock market is divided into multiple sectors under the Global Industry Classification Standard (GICS). There are 11 major stock sectors classified under GICS as follows-

  • Energy

Energy sector includes all the companies associated with oil, gas, coal, fuel and energy equipment and supplies. Judging oil and gas companies is very simple as one just needs to see the rate of oil. An uplift in the oil prices means the oil and gas companies are heading strong while the opposite happens in the case of downfall of prices. Mostly, the prices remain stable and so the companies are also stabilized.

  • Health Care

This sector will always remain profitable because medical aids are always required. The companies which produce pharmaceuticals and healthcare equipment along with the companies providing healthcare services are included in this sector. There are several big and well-recognized names associated in this field which have a reputation of selling the best medical products in the market.

  • Utilities

Electricity, gas, and water are our basic utilities and so the companies of this sector are never going to come down because these are the basic amenities on will always need. There are many regional and secure companies related to this sector and it is very safe to invest in the stocks of the utility segment of the stock market.

  • Real Estate

The companies operating malls, apartments, offices and senior living communities come in the category of the real estate sector. This is undoubtedly a very good sector because these companies get their income from the rent payers and the values of properties that usually tend to increase. One has to think less and invest more in this sector.

  • Materials

This sector includes all kinds of material producing companies in the field of metals, chemicals, construction, packaging, and paper. Such companies commonly deal in the supplying of these materials to other companies which further sell their products. One can consider this sector to be the backbone of several other sectors.

  • Financials

This sector includes insurance, real-estate and bank companies. This sector is very closely linked to the stock market. The increase and decrease in the interest rates of banks and other companies help one to judge and evaluate the profit or loss of investing here. This sector is highly profitable but also turns out to be speculative sometimes.

  • Information Technology

The growth in the field of technology is unstoppable and so is this tech sector. It is a sector which can bring massive profits to its investors. All kinds of software, internet, and semiconductor companies are included in this sector. There are big names and this sector has maintained its position of leading stock sector from the past few years.

  • Industrials

Many kinds of industries such as defense, construction, manufacturing, airlines, aerospace, and machinery come under the industrials sector. There are a lot of high profile and solid companies in this sector. It is also a stable sector that tends to give good profits to its investors because most of the companies have a well established financial background due to which the shareholders have to worry less about losses.

  • Telecommunication Services

Companies and online platforms such as websites and applications are all under this sector. The popularity of this sector is widely growing and it is considered to be a game of profit to invest in this sector right now.

  • Consumer Discretionary

This sector has one of the most popular companies under it because people spend much money on the products of these companies. The companies related to apparels, restaurants, retailers, hotels, autos, household products, and media come under this sector. All these companies are linked with the daily life of people which is why it is a good choice to invest in.

  • Consumer Staples

This sector is also somewhat related to the Consumer Discretionary sector because it includes the food, tobacco and beverage companies. Some of these companies also manufacture several products of personal and household use just like Consumer Discretionary. This sector is safe to invest in because all these products are used on a daily basis by all people.

About Travis 491 Articles
Started investing in 2013 with $8,500 I turned that into 180k within a few months. Every year since I have increased the amount of money made from micro cap stocks and stock options.

Be the first to comment

Leave a Reply

Your email address will not be published.


*