Technology and consumer cyclical sectors most profitable with 47% average ROI: stocks

Despite the start of 2020 proving challenging for the global economy, the global stock market has shown resilience to record significant gains for investors. Some sectors have surpassed projections to record impressive Return On Investment (ROI).

Data presented by Buy Shares indicates that the technology sector is the best performing stock category in 2020 as of December 31 with an average ROI of 49.25 percent. The technology sector has the highest returns because players in the industry offered solutions to help people manage the pandemic. As more people remained in lockdown, it resulted in an increased demand for digital services like entertainment, communication, remote working, and online shopping. The demand for these services has led to increased revenues resulting in superior stock market performance.

The consumer cyclical sector is the second-best performing category of the year after recording an average ROI of 46.42 percent. The category entails stocks that rely heavily on the business cycle and economic conditions. Players that fall under this category include automotive, housing, entertainment, and retail.

The energy sector stocks are the worst-performing with average returns of minus 35.04 percent. The real estate sector has also recorded significant losses with stocks recording an average ROI of minus 5.57 percent to become the second-worst performing category.

(WBJ)