Which industry would be the best performing stock in 2007?

Question

The industry that I feel would outperform other industries is heavy construction. Share your views and why?

Answer 1

go green
hershey choclate
apple

Answer 2

No one can predict such an outperforming industry. Indeed, in case actors in the market would know that an industry would outperform the market, stocks of this industry would be directly bought so that no opportunity exists anymore.

Nevertheless, to know what industry is more likely to outperform the market, check volatilities. The more risk, the more return. Hence, I think industries like small caps on biotech or IT start-up are the more risky and so, with the highest EXPECTED return. Of course, this may not be true, but this is EX-ANTE true.

(I speak here about industry, not investments. Indeed, hedge funds and derivatives market are more interesting in what concerns expected return)

Answer 3

Try this stock:

China Mobile (CHL). Growth in population in China as well as expanding economy make this sleeping giant a perfect play. The stock is $43 with a forward p/e of 17 and pays a 4% divvy.

CHL has 1 billion in potential new customers. It's also hedge against the falling dollar. Chinese people often don't have computers so the phone they buy will be their access to the Internet. Google and CHL just inked a deal that let's CHL suscribers get on the internet via phones.

CHL is a monopoly that is protected by the Chinese government. CHL is also the industry leader with 65% market share. Superb balance sheet. It's stock price is trading at a discount to its growth rate.

China is where the growth is right now, you want to be in this stock. By 2010, this stock will double and you get the divvy to boot.

Answer 4

Blue Chip stocks.

They have been pulling in record profits and improving their efficiencies. This could be a banner year for Blue Chip stocks in the US.

I also continue to like the emerging markets as a whole. Separately a couple of the markets will probably struggle this year, but as a whole they should thrive!

Answer 5

If history will repeat itself, its likely to be the industry with the highest 12 months trailing RSI with a P/S below 3.

Answer 6

I have done very well for the past 3 years. I have 75% of my investments in the steel & iron sectors. Latin America. These companies did a super 50+% increase for me and am sticking to these again this year.

DON

Answer 7

Coal mining might be worth a look as well. In the US an awful lot of electricity is fueled by coal. (Oh, and be sure to include FuelTek, FTEK, in your looking, they make coal more environmentally-friendly before burining).

Answer 8

In my opinion, and I'm not giving advice here, but I think consumer durables will be good.

GE, P&G, etc. Those types of stocks.