What are the 11 Stock Market Sectors?

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A stock market sector is a group of stocks that are in similar industries or have a lot in common with each other, are typically grouped in to 11 different stock market sectors. One of the most commonly used classification systems is the Global Industry Classification Standard (GICS). By this classification standard, the 11 stock market sectors are:

Stocks get categorized into sectors to make it easier to compare companies that have similar business models. Sectors also make it easier to compare which stocks are making the most money.

Energy Sector

This sector covers companies that do business in the oil and natural gas industry. It includes oil and gas exploration and production companies, as well as producers of other consumable fuels like coal and ethanol. The energy sector also includes the related businesses that provide equipment, materials, and services to oil and gas producers. It doesn’t include renewable energy companies, which instead are considered utilities.

Examples of stocks in the energy sector are Chevron Corp (CVX)NYSE and Exxon Mobil Corp (XOM)NYSE

Materials Sector

This covers companies that provide various goods for use in manufacturing and other applications. It includes makers of chemicals, construction materials, and containers and packaging within the materials sector, along with mining stocks and companies specializing in making paper and forest products.

Examples of stocks in the materials sector are Sherwin-Williams Co (SHW)NYSE and Dow Inc (DOW)NYSE

Industrials Sector

This sector encompasses a wide range of different businesses that generally involve the use of heavy equipment. Transportation stocks such as airlines, railroads, and logistics companies are found within the industrials sector, as are companies in the aerospace, defense, construction, and engineering industries. Companies making building products, electrical equipment, and machinery also fall into this sector, as do many conglomerates.

Examples of stocks in the industrials sector are 3M Company (MMM)NYSE and Fedex Corp (FDX)NYSE

Utilities Sector

This sector covers just about every type of utility company you can think of. It includes utilities specializing in making electrical power available to commercial and residential customers, as well as specialists in natural gas transmission and distribution. Some utility companies engage in more than one of these different sub-specialties. Independent producers of power and renewable electricity also land in the utilities sector.

Examples of stocks in the utilities sector are Consolidated Edison Inc (ED)NYSE and Duke Energy Corp (DUK)NYSE

Healthcare Sector

This sector has two primary components. One covers companies that develop pharmaceuticals and treatments based on biotechnology, as well as the analytical tools and supplies needed for the clinical trials that test those treatments. The other encompasses healthcare equipment and services, including surgical supplies, medical diagnostic tools, and health insurance.

Examples of stocks in the healthcare sector are Johnson & Johnson (JNJ)NYSE and CVS Health Corp (CVS)NYSE

Consumer Discretionary Sector

The consumer discretionary sector covers goods and services for which consumer demand depends upon consumer financial status. For example, if you make $25,000 per year, you probably buy a different car than someone who makes $25 million per year. The sector includes companies that sell higher-priced items like automobiles and luxury goods, as well as leisure products. You’ll find both brick-and-mortar and e-commerce-based retail companies in this category, along with hotel and restaurant stocks.

Examples of stocks in the consumer discretionary sector are Home Depot Inc (HD)NYSE and Tesla Inc (TSLA)NASDAQ

Consumer Staples Sector

This sector includes goods and services that consumers need, regardless of their current financial condition. The category includes companies in the food, beverage, and tobacco industries, as well as household and personal care products. You’ll also find retail companies that specialize in selling staples, such as supermarkets, in this group.

Examples of stocks in the consumer staples sector are Procter & Gamble (PG)NYSE and Coca-Cola (KO)NYSE are two of the most valuable consumer staples stocks in the U.S. market.

Financials Sector

This sector covers businesses that are primarily related to handling money. Obviously banks are a key industry group within the sector, but it also contains insurance companies, brokerage houses, consumer finance providers, and mortgage-related real estate investment trusts among financials.

Examples of stocks in the financials sector are Morgan Stanley (MS)NYSE and Warren Buffett’s Berkshire Hathaway (BRKA & BRKB)NYSE

Information Technology Sector

This sector covers companies involved in the different categories of technological innovation. Some companies in information technology focus on creating software or providing services related to implementing technological solutions, while others are more involved in building the equipment, components, and hardware that make tech possible. Information technology also includes makers of semiconductors and the’’ equipment used to produce semiconductor chips.

Examples of stocks in the financials sector are Microsoft (MSFT)NASDAQ and Apple (AAPL)NASDAQ

Communication Services Sector

This is the newest of the GICS sectors and includes a couple of major areas that used to be part of other sectors. Telecommunication services providers, including both wireless telecom networks and providers of old-style landline services, make up one wing of the sector. At the other end are media and entertainment companies, including both older media like television and radio and interactive media via the internet and newer forms of communication.

Examples of stocks in the communication services sector are Meta (formerly know as Facebook) (META)NASDAQ and Alphabet (GOOGL & GOOG)NASDAQ

Real Estate Sector

This sector generally includes two different types of investments related to real estate. Firstly, there are stocks that are responsible for developing new real estate projects and then managing them by obtaining tenants for various spaces within the project property. Secondly there are real estate investment trusts, which are special tax-favored business entities that operate in various areas of the real estate industry, which get counted as within the real estate sector.

Examples of stocks in the real estate sector are Simon Property Group (SPG)NYSE and Equinix Inc (EQIX)NASDAQ