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3 Industrials Stocks in the Penalty Box

Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the industry’s six-month return of 4.5% has fallen short of the S&P 500’s 9% rise.

1 Consumer Stock with All-Star Potential and 2 to Avoid

Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. On the other hand, they usually underperform during bull runs, and this paradigm has rung true over the past six months as the sector’s -4.4% decline paled in comparison to the S&P 500’s 9% gain.

1 Industrials Stock to Buy in 2025 and 2 to Ignore

Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 4.5% has trailed the S&P 500’s 9% gain.

3 Software Stocks Primed for Growth

Software is eating the world, and virtually no business is left untouched by it. This secular theme has materialized in superior earnings growth and stock price performance for most SaaS companies, and over the last six months, the industry’s 26.2% return has topped the S&P 500 by 17.2 percentage points.

1 Healthcare Stock to Hold Forever and 2 to Ignore

Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns - over the past six months, healthcare stocks have collectively shed 1.7%. This performance is a noticeable divergence from the S&P 500’s 8.9% return.

2 Healthcare Stocks with Big Upside and 1 to Skip

Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand. The result? Over the past six months, the industry has tumbled by 1.7% over the last six months. This drawdown is a stark contrast from the S&P 500’s 9% gain.