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The Best and Worst Performing Sectors in 2019

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The Best and Worst Performing Sectors in 2019

The Best and Worst Performing Sectors in 2019

If you think back almost 12 months, you’ll remember that the markets opened the year with extreme levels of volatility.

Stocks had just finished the worst year in a decade. Then in early January, Apple cut its earnings guidance after the company had already lost over $400 billion in market capitalization. The S&P 500 and DJIA seesawed, suggesting that the lengthy bull run could come to an end.

Yet, here we are a year later ⁠— we’re wrapping up the decade with a banner year for the S&P 500. As of the market close on December 30, 2019, stocks were up 28.5% to give the index what is expected to be its second-best performance since 1998.

Winners and Losers

Today’s infographic pulls data from Finviz.com. We’ve taken their great treemap visualization of U.S. markets and augmented it to show the sectors that beat the frothy market in 2019, as well as the ones that lagged behind.

Below, we’ll highlight instances where sectors stood out as having companies that, with few exceptions, saw ubiquitously positive or negative returns.

Top Performing Sectors

1. Semiconductors
Semiconductor stocks soared in 2019, despite sales expected to shrink 12% globally. Although this seems counterintuitive at first glance, the context helps here: in 2018, there was hefty correction in the market – and the future outlook for the industry has also been revised to be rosier.

2. Credit Services
In case you didn’t get the memo, the world is increasingly going cashless — and payments companies have been licking their lips. Mastercard, Visa, American Express, Capital One, and Discover were just some of the names that outperformed the S&P 500 in 2019.

3. Aerospace / Defense
The vast majority of companies in this market, including Lockheed Martin, Raytheon, and United Technologies, all beat the market in 2019. One notable and obvious exception to this is Boeing, a company that saw its stock get hammered after the Boeing 737 Max model was grounded in the wake of several high-profile crashes.

4. Electronic Equipment
Apple shareholders had a bit of a wild ride in 2018. The company had risen in value to $1.1 trillion, but then it subsequently lost over $400 billion in market capitalization by the end of the year. Interestingly, in 2019, the stock had a strong bounce back year: the stock increased 84.8% in value, making it the best-performing FAANG stock by far.

5. Diversified Machinery
Manufacturers such as Honeywell, General Electric, Cummins, and Danaher saw solid double-digit gains in 2019, despite a slowing U.S. industrial sector. For GE in particular, this was a bit of a comeback year after its stock was decimated in 2018.

Honorable mentions:
Construction Materials, Medical Labs & Research, Gold, Medical Appliances, Insurance Brokers

Worst Performing Sectors

1. Oil
Big oil, independent oil, and many oil services companies all had a year to forget. While this is not unusual in a highly cyclical industry, what is strange is that this happened in a year where oil prices (WTI) increased 36% for the best year since 2016.

2. Wireless Communications
Growing anticipation around 5G was not enough to buoy wireless companies in 2019.

3. Foreign Banks
It’s a tough environment for European banks right now. Not only is it late in the cycle, but banks are trying to make money in an environment with negative rates and large amounts of Brexit uncertainty. The strong U.S. dollar doesn’t help much, either.

4. Apparel
The CEO of The Gap has described U.S. tariffs as “attacks on the American consumer”, providing just another nail in the coffin to the bottom line of the retail industry. Given these additional headwinds, it’s not surprising that companies like The Gap, American Eagle, Nordstrom, Urban Outfitters, and Abercrombie & Fitch all finished the year in the red.

5. Foreign Telecoms
Continued strength of the U.S. dollar weighed on foreign telecoms, which make the majority of their revenues in other currencies.

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Markets

Will Tesla Lose Its Spot in the Magnificent Seven?

We visualize the recent performance of the Magnificent Seven stocks, uncovering a clear divergence between the group’s top and bottom names.

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Will Tesla Lose Its Spot in the Magnificent Seven?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In this graphic, we visualize the year-to-date (YTD) performance of the “Magnificent Seven”, a leading group of U.S. tech stocks that gained prominence in 2023 as the replacement of FAANG stocks.

All figures are as of March 12, 2024, and are listed in the table below.

RankCompanyYTD Change (%)
1Nvidia90.8
2Meta44.3
3Amazon16.9
4Microsoft12
5Google0.2
6Apple-6.7
7Tesla-28.5

From these numbers, we can see a clear divergence in performance across the group.

Nvidia and Meta Lead

Nvidia is the main hero of this show, setting new all-time highs seemingly every week. The chipmaker is currently the world’s third most valuable company, with a valuation of around $2.2 trillion. This puts it very close to Apple, which is currently valued at $2.7 trillion.

The second best performer of the Magnificent Seven has been Meta, which recently re-entered the trillion dollar club after falling out of favor in 2022. The company saw a massive one-day gain of $197 billion on Feb 2, 2024.

Apple and Tesla in the Red

Tesla has lost over a quarter of its value YTD as EV hype continues to fizzle out. Other pure play EV stocks like Rivian and Lucid are also down significantly in 2024.

Meanwhile, Apple shares have struggled due to weakening demand for its products in China, as well as the company’s lack of progress in the artificial intelligence (AI) space.

Investors may have also been disappointed to hear that Apple’s electric car project, which started a decade ago, has been scrapped.

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