Top Investing Trends: Profitable Sectors and Industries to Watch in 2019

As many analysts and market watchers are warning that investors are in for a wild ride during 2019 as the former historical trends in the market are indicating that after a long period of price pumps and benevolent market trends, market crisis is usually the next to strike, some industries that managed to show an immense success in the market are said to continue with increasing growth rate even in 2019.

Despite price slides and the growing budget deficit of the United States, the market is still run by major players that seem to be infallible or at least close to infallible.

Top Performers of the Market and Where to Find Them in 2019

One of the definite winners of 2018 said to be able to survive the upcoming period of 2019 as the year has already entered the second quarter is healthcare industry. According to chief investment strategist at CFRA Research in New York, healthcare sector might have the best chances for bouncing off if the crisis takes place despite going down by 1.4% in oppose to the average 64% of gains in 2018.

Moreover, HD Vest chief investment strategist recommends that investors should pay attention to financial industry despite the rising interest rates imposed by the Federal Reserve, while leverage for loans have been expanded to meet increased capital for deployment, which means more money for the industry in 2019.

Another one of sectors with a strong defense in 2019 is said to be industrial sector, however, the focus of investors should be switched from natural resource companies to allow profitability in the sector of waste management companies.

These companies in the sector of industrials are offering environmental services and solutions alongside opening recycle centers and providing solutions for controlling pollution. As these services are becoming ever more so necessary, the profitability of waste management companies is rising accordingly.

Investing in Artificial Intelligence: Top AI Companies Indicating Profitability of the Sector

Artificial Intelligence represents a uniquely transformational technology that had found its way towards immense profitability through different applications of AI, that way becoming one of the most profitable industries with great transformative potential.

AI is also being implemented and easily integrated with many different technologies, building new valuable markets that can bring profit to investors as well, as major companies like Alphabet (NASDAQ: GOOG) and Amazon (AMZN: GOOG) are dominating the market with implementing Artificial Intelligence in various types of projects.

In addition to obvious acceleration of this transformational technology, according to PwC, AI implementations and integrations across various sectors should bring 15.7 trillion dollars to the global economy in the course of the next ten to eleven years.

Top Leading AI Companies in the Sector of Artificial Intelligence

Leading companies can provide a valuable insight into the best-case scenario of a certain sector or industry, while Amazon Web Services and Alphabet’s Waymo are making perfect indicators into the potential of Artificial Intelligence.

Amazon Web Services is leading in the area of speech and image recognition services and studies, while Amazon company on the head with their CEO, Jeff Bezos, have managed to collect a more than a decent amount of profit through their AI-backed virtual assistant, Alexa, while Amazon’s VA is still attracting interest from buyers and recording increased sales.

Waymo, on the other hand, is using AI in a different approach as the company is working on automated self-driving vehicles, which are gaining more on popularity alongside electric vehicles such as Tesla’s models.

According to the latest growth showcased in the sector of AI, Gartner is predicting that the industry will get to see a growth of 3.9 trillion dollars in the course of the next three years by the year 2022 based on the sales growth, revenue, cost reduction and improved user experience.

Top Investing Trends: The Rising Industry of Electric Vehicles Set to Become Adopted Trend by 2025

Even though Tesla (NASDAQ: TSLA) is one of the most popular manufacturers of electric vehicles, especially with a great focus placed on their CEO, Elon Musk, regarding the latest controversies that took place during 2018 and are still affecting the company’s business, Tesla is not the only indicator in the state of the industry of electric vehicles.

The EV sector seems to be progressing at an accelerated pace, which makes predictions for the industry more than positive in the long run, while market watchers are predicting that the sector of electric vehicles will get to see 567 billion dollars in market growth by the year 2025.

How Industry of Electric Vehicles Will Grow to Over 500 Billion Dollars by 2025

Tesla is definitely the subject of top stories when it comes to following up with the industry of EV and electric vehicles trends, as the company managed to increase sales of their Model 3 vehicle from selling around 1,150 Model 3 units in the fourth quarter of 2017, to achieving 63,150 sales for the same model only a year later, in the last quarter of 2018.

Other auto manufacturers and automotive companies such as Buick, Cadillac, General Motors (NYSE: GM) and Chevrolet are also working on electric car vehicle models, so expansion of the industry is expected at an accelerated level in the course of the next six to five years.

General Motors might also represent a valuable indicator, although perhaps not the most popular, into the profitability of EV industry as the company decided to lay off a certain number of users in order to start a new platform for designing and manufacturing of automotive vehicles.

At this pace of growth, the industry will get to see a total market cap of 567 billion dollars by the end of 2025.

Top 7 Service Sector Stocks That Will Pay You to Own Them

According to invertorplace, Service-sector dividend stocks offer diverse options and passive income to overcome pensive markets
Without having reached a full quarter for the new year, the markets have already flashed frustrating signals. Unfortunately, a promising start stalled early. Since late February, the Dow Jones is still down in negative territory. But despite these challenges, services stocks present a viable opportunity.

The most obvious tailwind is that American society mostly transitioned to a service-based economy. According to the International Trade Administration, 80% of private-sector jobs are levered to the service industry. More critically, we’re really good at what we do.

For the past year, President Donald Trump complained bitterly about trade-imbalances with other nations, particularly China. However, the Trump administration never says a word about the services trade, where we enjoy a robust surplus. Naturally, this dynamic boosts the case for services stocks.

Another favorable factor is that several publicly traded companies in this sector are also dividend stocks. During uncertain phases, these passive-income generating names provide practically-guaranteed returns. Additionally, dividend-payers tend to perform better during bear markets.

Finally, the service sector covers a wide range of opportunities. From retail to entertainment to communications, you’ll have no shortage of options. Here are seven services stocks that will generate consistent, passive income for your portfolio:

United Parcel Service (UPS)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: Shutterstock
Few service-based companies offer as much upside potential as e-commerce firms. However, popular names like Amazon (NASDAQ:AMZN) are not dividend stocks, but rather, operate purely on a capital-gains basis. So the next best thing is the transportation middleman, namely United Parcel Service (NYSE:UPS).

Of course, the immediate criticism is that Amazon’s venture into in-house product mailing solutions will completely disrupt UPS stock. Certainly, the situation looks bad for the courier. However, UPS responded with their own e-fulfillment service, and it has more credibility than Amazon can dream about.

While I respect the e-commerce giant, UPS has an established transportation network. In terms of scales of economy, UPS stock easily wins out. Plus, the company pays out a generous dividend yield at 3.5%. You’re just not going to get that with most services stocks levered purely to e-commerce.

Penske Automotive Group (PAG)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: Shutterstock
With the advent and later dominance of ride-sharing apps like Uber and Lyft, the concept of buying cars is steadily becoming archaic. In my first-ever Uber ride, my driver told me his personal forecast: people will stop purchasing cars and transition to ride-sharing full-time.

If such a prediction comes true, services stocks like Penske Automotive Group (NYSE:PAG) would simply implode. Although I’m not going to necessarily disagree with my driver — gotta keep my five-star rating! — the automotive still breathes.

One of the main factors keeping PAG stock in the running is practicality. Sure, ride-sharing apps have added options to the mix. However, nothing beats the convenience and cost-savings of driving yourself to your desired destination.

With Penske’s massive dealership network, they consolidate whatever sales opportunities exist, eating alive the small guys. This stinks if you’re on the receiving end of this tactic. However, for stakeholders in PAG stock, they’re not complaining, especially because of its 3.6% yield.

H&R Block (HRB)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: Mike Mozart via Flickr
All services stocks provide important, and often necessary functions to society. However, no one has such an extreme love-hate dynamic like H&R Block (NYSE:HRB). Tax season is always a difficult time for families this time of year. Even if you’re due for a refund, you don’t like the paperwork involved.

Of course, HRB stock makes a case for itself by alleviating this pressure for many families. This year, and moving forward, H&R Block presents an even more valuable service. That’s because several taxpayers complained about the complexities and the surprise tax hit they incurred due to new laws.

Moreover, the “gig economy” reshaped the labor force, with many (usually young) workers eschewing the corporate ladder for professional autonomy. Usually, though, this implies that these workers are independent contractors, which is a much more complicated tax process than being a run-of-the-mill employee.

As such, you can expect HRB stock to significantly rise higher. And if not, the company is among the higher-paying dividend stocks, with a 4.1% yield.

Verizon (VZ)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: Shutterstock
I’m usually not into dividend stocks as they don’t fit my risk-taking personality. However, I recently took a shot with AT&T (NYSE:T). To summarize my bullish case for the telecom giant, I only need one “word,” which obviously is 5G.

However, AT&T isn’t the only name among services stocks to benefit from the next-generation in wireless technology. Rival Verizon Communications (NYSE:VZ) offers similar fundamental upside. In fact, Verizon won a critical PR victory, becoming the first commercial 5G provider. But other reasons exist why you should consider VZ stock.

While I’m partial to AT&T as an investment, the company has leveraged itself with aggressive acquisitions. If they don’t pan out, T shares will have serious problems. True, VZ stock isn’t perfect in this department, but it’s more stable than its core competitor.

For this stability, you’re not missing out that much in terms of passive income. Currently, Verizon offers a generous 4.1% dividend yield.

BG Staffing (BGSF)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: Flazingo Photos Via Flickr
Back during the “analog” days, services stocks in the staff-sourcing industry had substantial relevancy. Primarily, organizations like BG Staffing (NYSEAMERICAN:BGSF) provided a useful platform for young workers to get their first professional job. Also, they helped get transitioning workers back on their feet.

But with the rise of digitalization, along with social media outlets like Facebook (NASDAQ:FB), BGSF stock appears anachronistic. Often times, it’s not about what you know, but who you know. Recent technologies have only made this adage frustratingly accurate, depending on your perspective.

Still, I like BGSF stock and its chances to work its way out of its long-term funk. As I mentioned with H&R Block, BG Staffing benefits from the autonomous gig economy. Due to various factors such as changing employment dynamics, millennials won’t typically stay at one job indefinitely.

Admittedly, you’ll probably need patience with BGSF stock. But while you’re waiting, it’s one of the highest-paying dividend stocks, featuring a 5% yield.

Six Flags Entertainment (SIX)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: Jeremy Thompson via Flickr
Many investors have the mistaken impression that services stocks are boring; indeed, the name itself doesn’t generate much excitement. However, this sector doesn’t have to induce you into a coma, as renowned theme park Six Flags Entertainment (NYSE:SIX) proves.

Famous (or notorious) for its stomach-churning rides, SIX stock has generated long-term gains since its initial public offering. Unfortunately, recent market sessions have offered the same diabolical sensations as you would get riding the theme park’s “Full Throttle.”

Much of the volatility stems from SIX stock not recovering from its fourth-quarter 2018 earnings report. Although the company handily beat expectations for earnings per share, revenues disappointed against expectations. Six Flags delayed opening new locations in China due to its slowing economy.

However, don’t forget that revenues have consistently increased over the years. Furthermore, a possible trade deal between the U.S. and China would skyrocket SIX stock. Because of the risks involved, the company pays out a 6.4% dividend yield.

National CineMedia (NCMI)
Top 7 Service Sector Stocks That Will Pay You to Own Them
Source: ATLAS Social Media via Flickr
I concede that National CineMedia (NASDAQ:NCMI) is a tough pill to swallow. The broader market downturn has disproportionately impacted services stocks related to the cineplex industry. Since the beginning of October, NCMI stock has dropped over 26%.

Given the popularity of streaming-entertainment firms like Netflix (NASDAQ:NFLX), National CineMedia seemingly has no chance. However, I’d advise against knee-jerk reactions when assessing NCMI stock. The box office, though a legacy institution, remains very much relevant in the 21st century.

How, you may ask? Simply, cineplex operators provide a social experience that streaming-related services stocks cannot. In dying shopping malls, astute developers refocused their efforts to provide event-based attractions for family-oriented Hispanic communities, to resounding successes. Against a comparable backdrop, NCMI stock may receive a similar lift.

If nothing else, National CineMedia is one of the most generous, legitimate dividend stocks. With a yield of 9.4%, it’s a risky but incredibly attractive proposition.

As of this writing, Josh Enomoto was long AT&T stock.