Industry Analysis

This is our first weekly sector insights post—analyzing the industries showing the strongest momentum heading into 2026. The goal: understand why certain industries are outperforming so you can align your positions with the prevailing winds. As covered in our research foundation post, industry selection accounts for roughly 37% of stock price movement. Getting this right is half the battle. Selection Methodology Industries are ranked based on three factors: 3-Month Relative Strength vs. S&P 500 — Which industries are outperforming the broader market? Institutional Accumulation Signals — Where is smart money flowing based on 13F filings and ETF flows? Catalyst Visibility — What upcoming events could drive continued momentum? This framework identifies industries with both technical strength and fundamental reasons to continue. ...

When you buy a stock, you’re not just betting on that company—you’re also betting on its industry and sector. Research shows these group-level factors account for roughly half of your stock’s price movement, whether you realize it or not. This isn’t opinion. It’s backed by decades of market research. The Core Finding: The 50% Rule William O’Neil, founder of Investor’s Business Daily (IBD), conducted multi-decade research analyzing the best-performing stocks across 130 years of market history. His findings established a clear hierarchy of what drives stock prices: ...