A rising tide lifted nearly all boats in 2024, with most sectors poised to deliver positive returns as of late-December. While tech and communication stocks may have dominated the market news, there were also winners in surprising places, like financials and consumer discretionary.
For 2025, the outlook for many sectors is bright, as themes like AI, falling rates, and the resilient economy have the potential to drive results. Read on for our sector portfolio managers’ outlook for 2025, plus where they’ve found the most exciting potential opportunities.
Technology
These companies have been powering the AI revolution.
Financials
Financials have been riding strong post-election momentum, giving them a potential tailwind into 2025.
Communication services
This winning sector has been inventing the future for AI.
Consumer discretionary
This sector has been on a roll, as US consumers keep bucking expectations.
Real estate
Data centers may offer an underappreciated play on the AI boom.
Health care
This innovative sector may offer long-term drivers and low valuations.
Energy
Rising global demand and limited supply could keep oil prices and profits high in 2025.
Industrials
Aerospace, reshoring, and restocking could all help this sector gain altitude in 2025.
Materials
There are bullish long-term stories to be found in this cyclical sector.
Consumer staples
Bargains and turnaround stories abound in this defensive sector.
Utilities
Electricity demand is at an inflection point, creating a once-in-a-generation potential opportunity.