- Leading Broker to Leave Greece Stock Market
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Main Players in the Greek Election
- Italy 2-Year Borrowing Costs at Peak Since December
- Euro Bond Wins Supporters, but Details Remain Vague
- German, UK Bond Yields Will Go Even Lower
- Labor Board Member Resigns Over Leak to GOP Allies
- Southern Europeans Wire Cash to Safer North
- With or Without Euro, Europe Must Raise Its Game
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
MOST SHARED
- Labor Board Member Resigns Over Leak to GOP Allies
- JPMorgan Beefs Up China Unit With $400-Million Injection
- Despite Graft Probe, Sun Hung Kai Is a Buy on Quality Assets: Pros
- Bankia Shares Open 26.75% Down After Bailout Request
- Australia's Hastie Collapses as Building Sector Struggles
- European Shares, Euro Gain as Greek Fears Ease
- Draft EU Report Attacks Italy on Economy
- Beijing Faces Brussels Action on Telecoms Aid
- Japan's Nomura Linked to Another Insider Trading Case
- Buy Asian Stocks Now as Market Panics Over Europe: Analyst
MOST POPULAR
HOT ON FACEBOOK
Four Sectors Most Likely To Lead The Market
Text Size 
Special to CNBC.com
Stovall notes the industrial sector ranks second in terms of the greatest percentage of companies with above average earnings and dividend-quality ranking.
One name that scores particularly well is Caterpillar [CAT
Loading...
()
].
Health Care
Dedio is also overweight in this area.
“Health care is a defensive play,” he says, but is quick to add some areas can still be very risky.
Dedio generally doesn’t invest in companies that are non-earners, such as drug developers that are far away from profitability.
At the moment, he favors diagnostic companies and orthopedic companies, such as Myriad Genetics [MYGN
Loading...
()
]. This molecular genetics diagnostics company makes a blood test that is used to detect gene mutations within people who have a high risk of certain types of cancers.
Myriad, he says, not only dominates its market but has great margins. It is also benefiting from the increased medical focus on early detection.
As a group, Stovall says health care ranks fairly low, largely because of increased regulation. In addition, he says, “we have seen a lot of major pharmaceutical companies…with dwindling product pipelines.”
 |
AP |
One name that does rank well is Johnson and Johnson [JNJ
Loading...
()
].
Other Areas
Other stocks, representing a variety of sectors, also place high on Stovall’s list.
In the consumer staples sector, which is currently the highest ranking sector, there is Altria Group [MO
Loading...
()
].
In the energy and materials sectors—both of which are very commodity oriented and are at the mercy of the economic expansion and geo-political events—Chevron [CVX
Loading...
()
] and PPG Industries [PPG
Loading...
()
] score well.
- Commodities: Fab Four And A Motley Crew
- Retail Investors Can Take A Worldly Approach To the Dollar
- Stocks Pickers Vs Index Funds: The Debate Rages On
- What To Do If The Market Goes Cold This Winter
- Real Property, Real Returns
- Four Sectors Most Likely To Lead The Market
- Taking A Cautious Approach To Riding The Recovery
- Time to Adjust Your Tech Portfolio
In utilities, which rank below average as a group, Stovall likes Florida Power and Light [FPL
Loading...
()
]. And in telecom, which also ranks fairly low, he likes CenturyTel [CTL
Loading...
()
]. "I think because the sector has gone through a few personality changes." muses Stovall.
Global View
When looking at stocks, financial advisors say investors should also be sure to include non-U.S equities on their list.
“In terms of positioning globally, I would have 40 percent of assets in the U.S. and 60 percent in stocks outside U.S., " says Froehlich. "The story outside the U.S. will be better.”
He recommends 90 percent of that be allocated to emerging markets, particularly China, Brazil and Eastern Europe. To get this kind of exposure, a good option would be a diversified emerging markets ETF.
While there are various segments so the market that are likely to perform well as a whole, Stovall warns that the important thing is to invest in solid companies.
“Always pay up for quality because you’ll never be disappointed.”
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
Data is a real-time snapshot *Data is delayed at least 15 minutes
