Best and worst fields for stock investing in 2017

Written by Posted On Wednesday, 26 April 2017 02:04

 

Stock investing is not something that can be done overnight. You want to multiply your not to decrease it, so you have to take every single step of this baffling yet rewarding process very seriously. Let me break off the scary tone and present you the most important part of stock investment. Your successful path in stock market begins from choosing the correct field.
Just like in the game mafia the morning is not good for all stocks. Some stocks go up in price, and some go down. In this article, we are going to talk about the fields that made it through the night and those who did not. Without further ado here two of the best and worst fields for stock investing in 2017.

What are the fields you should stay away from?

 

1. Apparel/ Footwear Retail

For someone not involved in stocks, it might seem that fashion industry is an everlasting source of money. People love shopping and new stores open on a regular basis. However, it is only illusive, in reality the current situation in the apparel industry is not so promising. The 5 big companies that dominate the market in the U.S., have been decreasing recently. Here are the numbers that show the price decline and the total return of the 5 apparel industry giants.

 

Company

Ticker

Price decline - 2017

Total return - 2016

Urban Outfitters Inc

URBN

+0.31%

-4%

25%

Nordstrom Inc.

JWN, +0.39%

-5%

-1%

Kohl’s Corp.

KSS, +0.46%

-16%

8%

Macy’s Inc.

M, -0.06%

-14%

7%

L Brands Inc.

LB, +0.24%  

-7%

-27%



2. Semiconductors/Chips

Now, this is where things get a little complicated because tech is known as one of the best fields to invest in 2017. It is true but not all aspects of tech. Hardware - yes, software - sure, semiconductors - NO. In 2016 chip making companies like Nvidia Corp. (NVDA) and Advanced Micro Devices (AMD) had a good reputation and significantly high return rates. However, 2017 was not so welcoming for this industry and fortune turned its back. Nvidia Corp., for instance, finished 2016 with earnings that jumped to 104%, but as investing reporters say they have gone too far, too fast and their rise will end soon. As for Advanced Micro Devices, they grew revenue by single digit percentages and lost money.  The bottom line is , do not be deceived by the high, two or three digit numbers from previous years. The plot in stock market can get twisted quicker than you imagine.

 

Your top choices of investment in 2017

 

1. Healthcare and Biotechnology

The presidency of Donald Trump affected stock market a lot: foreign investments as well as investing in oil and gold have become harder. On contrary, it positively impacted the healthcare sector and biotechnology remains a major player in the stock market. Companies like Celgene Corp., Gilead Sciences Inc., and Exelixis Inc. show pluses in their sales. Celgene Corp. had its sales up by 18%, Gilead Sciences Inc. has been growing in the rate of 30%, as for Exelixis, professionals of the field estimate it to grow more than 110%. And this perspective doesn’t apply to the mentioned companies only, the biotech sector has a huge potential of becoming a top field in the stock market.

2. Telecommunications

Communication-related companies have been the high-yielders of stock market for a long time. In 2017 they again possess the reputation of a profitable industry. Take the example of Frontier Communications Corp.; they increased their price by 11%․ Trump’s presidency has brought some good news for this field as well. Due to presidential changes, a lot of telecommunication companies like print, Verizon, Comcast (CMCSA), Dish (DISH) and so on offer significantly high return rates.

So what?

The trends in stock market are not stable, the worst fields of x year can be the most profitable ones in z year. The professionals of the field constantly do research to identify the best investment options and share them with potential stockholders via investment newsletters.

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