The market’s biggest sectors have lost their shine in the first half of 2022, but they’ve recovered in the second half. The consumer and tech sectors have rebounded the most, with the latter leading the way with 7.5% gains. Among these sectors, Tesla and Home Depot stocks are leading the way. Here’s why. It’s time to make a move. Read on for tips on how to buy Tech and Consumer stocks today.
Increasingly, investors are looking to defensive sectors such as consumer staples and consumer technology stocks to protect their portfolios from the volatility of the markets. These stocks, which range from your typical cell phone to the latest smart home technology, continue to thrive despite the turbulence in the market, as the Nasdaq Composite has fallen 10% year to date. You can also invest in the consumer products sector, which includes pharmaceuticals, tobacco, and food and beverage companies.
The internet sector has thrived as consumers moved towards online retail. Amazon’s total sales in the second quarter of 2021 expanded 27% year-over-year, hitting $113.5 billion. However, this growth is slowing, and there are signs that a coronavirus outbreak may be affecting its estimates. While these trends may not be a good buy right now, they may make for an excellent investment in the coming months.
The Chinese electric-vehicle makers have taken a hit in the market during the recent lockdown, but their rebound suggests that a big day ahead for these companies on Wall Street. Meanwhile, BYD Electronic and XPeng, both electric sedan makers, have posted impressive gains. Combined, these stocks rose 4.6% and 11.0%, respectively. Aside from these two, the Chinese consumer stocks are among the top gainers on the market today.
While these two sectors may not seem like the most exciting investments for the stock market, they are surprisingly attractive compared to other sectors. Apple’s iPhone and iPad, along with their Mac computers, have high customer loyalty, and a growing array of services. In the same way, Intel, the largest semiconductor company in the world, designs PCs’ central processing units and specialty chips for artificial intelligence. The company is also planning to make chips for other companies. Cisco Systems is a leading provider of enterprise networking hardware.
While some of the tech stocks trade at nosebleed valuations, they’re still a great deal richer than the market. Alphabet, Apple, and Facebook all trade for less than 23x consensus forward earnings. Amazon and Whole Foods Market have the highest P/E ratios, but despite their large investments and modest reported earnings, they’re still undervalued compared to the rest of the market. The Motley Fool’s recommendations include Microsoft, Google, Apple, and Warner Bros.