Zacks Sector Telescope
Construction (summer is easier to build), Building Materials (think home building), Electronics & Media (summer movies), Water Supply (drought), and Electricity (air conditioning) — all look stronger now.
Weak sectors are Energy, Consumer Staples, and Industrials.
(1) Health Care is Very Attractive, so look for a play in Medical Care. The health care industry has been strong and stable for months according to Zacks Rank.
Company to look at: HCA Holdings
HCA Inc. is a non-governmental hospital in the U.S. providing health care and related services.
The Company operates a network of acute care hospitals, outpatient facilities, clinics and other patient care delivery settings. The Company also owns and manages freestanding surgery centers, diagnostic and imaging centers, radiation and oncology therapy centers, rehabilitation and physical therapy centers, and various other facilities. HCA Inc. is headquartered in Nashville, Tennessee.
(2) Consumer Discretionary Upgraded to a Very Attractive sector. Look at Consumer Electronics. Discretionary, Apparel, and Media. Summer spending is here.
Company to look at: Adidas AG
Adidas is a leading brand in the sporting goods market with strong positions in footwear, apparel and hardware. Adidas products offer tech innovations and cutting-edge designs to athletes of all skill levels who aspire to achieve peak performance. The Adidas brand is structured in three divisions: Forever Sport, Originals and Adidas Equipment.
(3) Utilities Upgraded to Attractive. Water Supply (drought in California) and Electric Power (summer air conditioning) look good.
Company to look at: National Grid
National Grid is an international energy delivery business, whose principal activities are in the regulated electricity and gas industries.
They own and operate the high-voltage electricity transmission network in England and Wales, and Britain's natural gas transportation system. In the U.S. they are one of the top ten electricity companies, with the largest electricity transmission and distribution network in the New England/New York region.
(4) Telcos Upgraded to Attractive. Telephone Utilities are the best spot.
(5) Financials Look Like a Market Weight. Major-Banks are looking good, with rate hikes on the way. Real Estate is good. Investment Banking & Brokering look good.
(6) Info Tech stays a Market Weight in June. Electronics and Computer-Office Equipment are the strong industries.
(7) Materials Fall to Market Weight. The best industry is Building/Construction Materials, with a big boost in summertime building. Paper and Chemicals are solid.
(8) Energy Becomes an Unattractive sector in June. The best industry is Oil & Gas Integrated followed by Oil & Gas E&P. Alternatives, Coal, Pipelines, and Drillers are in the tank.
(9) Industrials Look Unattractive. Business Products is the best. Machinery, Metal Fabricating, Pollution Control and Conglomerates are in the tank.
(10) Consumer Staples Stay an Unattractive sector. Stay away from Food, Beverages, Agri-Business, and Soaps & Cosmetics.
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