For those who have some extra cash lying around and would prefer to make it work for them instead of just receiving low interest rates from their savings account, it might be time to look at investment opportunities. While we have already compiled a list of the 7 best industries to start a business, we are also aware that founding a company from scratch might be too risky.
The stock market offers lucrative opportunities to make a profitable investment, especially when one knows which stocks to purchase. Despite the constant uncertainties involved in stock market investments, there are some industries whose performance speaks for itself.
With information gathered from Marketwatch, we were able to compile a list of the 10 best industries to invest in. The following industries have outperformed other sectors of the Dow Jones and thus offer investors a chance to make lucrative deals, especially when the right stocks are chosen. So let’s take a closer look and see what these industry sectors are all about.
10. Hotels
The Dow Jones Hotels Index has made it into the 10 best industries to invest in, due to a 40.97% growth rate since late August of 2013. Marriott International Inc (NASDAQ:MAR) was by far the fastest growing stock in the industry throughout this period, with share value rising by 71%.
9. Internet
The Internet Index enjoyed a 42.39% growth rate throughout the year, with the likes of Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) contributing their fair share. However, China Finance Online Co. (ADR) (NASDAQ:JRJC) heavily outperformed other stocks in this industry by increasing its share value by more than 272%.
8. Travel & Tourism
Barely outperforming the Internet Index is Travel & Tourism with a growth rate of 42.54% this past year. Shares of Tuniu Corp (NASDAQ:TOUR) were especially rewarding for investors, as they saw a value-increase of over 92%, thus making them the best performing stock of the industry.
7. Semiconductors
The industry responsible for producing the foundation of most modern electronic devices grew 42.85% this year. The interesting thing about this sector is that the 10 best performing stocks all saw sharevalue increase between 29% and 67%, thus indicating growth across the industry.
6. Biotechnology
The Biotechnology Index had some real winners, with Puma Biotechnology Inc (NYSE:PBYI) and Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) experiencing growth rates above 239%. Despite an average increase of 43.29% in index value, share value increased by at least 50% for the 10 best performing stocks..
5. Distillers & Vintners
The Distillers & Vintners Index makes the top 5 with a 44.58% growth rate. However, average growth does not mean investors were happy, as the best performing stock in the industry only grew by a moderate 7.37%.
4. Brewers
With a 47.84% increase in average share value, the Brewers Index also presented rather mixed results. Out of the 10 best performing stocks, four actually managed to score negative growth rates, while top performer Craft Brew Alliance Inc (NASDAQ:BREW) reached 22.50%
3. Consumer Electronics
Starting off the top 3 is the Consumer Electronics Index, with renowned firms such as Panasonic Corporation (ADR) (OTCMKTS:PCRFY), Sony Corp (ADR) (NYSE:SNE), and Sharp Corporation (ADR) (OTCMKTS:SHCAY). The index grew 60.24% on average, with front runner Casio Computer Co Limited (ADR) (OTCMKTS:CSIOY) reaching 33.67%.
2. Aluminium
The industry responsible for manufacturing one the most important materials of our time, grew by 94.38% this year. Great investment opportunities prevail in this sector due to the small number of firms active in it. As a matter of fact, only one industry stock lost value this year: Constellium N.V. (NYSE:CSTM) shares dropped by 0.55%.
1. U.S. Airlines
The best industry to invest in this past year was the U.S. Airlines Index, which achieved an average growth rate of 99.23%. By experiencing an increase in share value of more than 155%, Baltia Air Lines Inc (OTCMKTS:BLTA) was by far the best performer of the industry. With its peers also performing well, the U.S. Airlines Index seems to be the place to look at when looking for a savvy investment opportunity.
