investing guide

What Are Stock Sectors

stock sectors

So what are stock sectors?

As you watch CNBC you will hear the term sector being thrown around a lot. A stock sector is a group of companies that belong to a similar industry.

Some examples would be the retail sector, pharmaceutical sector, automobile sector, or oil sector.

No matter how well the stock market is performing overall; there will always be sectors of the stock market that are doing good or bad at different times for various reasons.

Knowledgeable investors can determine when it is time to get in and out of certain sectors. Once investors figure out which sectors are the strongest; they can then determine which companies within those sectors look the most profitable.