Market Watch: Hot Sectors In 2015

Reviewed: February 03, 2015
By FinanceWeb

There are many promising growth sectors and appealing stocks to buy in 2015. Some are part of emerging technologies like 3-D printing that has shown growth as a business to business service. Airlines have recorded high-profit levels due to savings on fuel costs without significant reductions in overall pricing. Online retailing will benefit from new and safer payment systems. Among the array of impressive sectors, some stand out as significantly strong.

Construction Is Overdue

A construction boom in the United States may be overdue given its needs. The Congress must fund the Highway Trust, and the overall consensus is that roads and infrastructure are badly in need of repair, renovation, and expansion. With bridges, tunnels, and highways as a major component, 2015 should see substantial federal and state investments in construction supplies and services.

Information Technology

IT will offer investment opportunities in 2015. It has four areas of continued development in cloud computing, mobile applications, data analysis and data security. With a continuing demand for greater data analysis and systems, events have also focused attention on data security. Cloud computing offers a nearly unlimited capacity for enterprise systems. The fourth quarter of 2014 set records for profits and volumes of mobile devices; one cannot expect more record quarters like Apple’s $18 Billion report, but China and India have further market potential.

The Solar Future is Now

In the energy sector, most of the news and attention has been directed at the falling price of oil and the worldwide oversupply of crude oil. However, in the energy sector are areas of high growth and continued growth potential. Providers of solar panels and related hardware, software and systems should be considered as excellent stocks to buy in 2015. In the current situation, solar electricity accounts for only about one percent of the overall power supply. Estimates from the International Energy Agency suggest that by the year 2050, solar power will be the leading single source of electricity.

Solar Technology and Supply

Solar energy does not compete with oil. Oil is not a favored fuel for creating electricity; it is too expensive even in the current market. Solar energy is renewable, and governments favor promoting sustainable energy that reduces the carbon impact. The current limitation on the rate of deployment is in the supply of solar panels and commercial capacity to design and install systems. Silicon suppliers are poised for significant growth. In addition to solar panels, silicon production forecasts are favorable both for increased prices and increased sales volumes. Silicon has many uses including a leading construction material, automobile manufacture, and a wide variety of personal care products. It will benefit from the current increase in Western consumer spending resulting from low gasoline prices

Rescue Financing in Oil Industry

The Shale boom in the United States has boosted national production to all time record highs. In the range of 9.2 million barrels per day, U.S. production has turned the balance of world markets away from OPEC and other traditional oil producing nations. In falling price cycles, many shale production and services companies have had to find alternative methods of financing in order to continue and expand operations. For many, the credit facilities that were available at $90 per barrel markets are too expensive in the under $50 per barrel environment. Some specialized lenders have established funding mechanisms aimed at supporting or taking over distressed oil producers. Through deeply discounted corporate bonds and high yield instruments, these lenders will acquire or gain leverage in undervalued production properties.

Defense Sector Spending

The defense sector will experience a significant level of growth because of the end of U.S. austerity in the budget sequester and demands for increased defense industrial production. Global hotspots have already begun to absorb defense sector resources at higher rates than in 2013 and 2014. The Middle East, situations in Iraq, Syria, and the expanding zone of conflict in Eastern Europe will impel additional defense spending both in the U.S and among its NATO and regional partners.