Before 2000, investment and industrial sectors were not standardized. Brokers, investment advisors and asset managers all used their own proprietary classification systems. There was, of course, plenty of overlap and the categories were fairly intuitive, but it was sometimes difficult to compare different portfolios and build asset allocation models that were adaptable across investment firms and brokerage platforms.
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The problem was solved in 1999 when MSCI Inc. (ticker: MSCI) and S&P Global Inc. (SPGI) jointly developed and began promoting the Global Industry Classification Standard, or GICS, sector system. The GICS divided the modern economy into 11 broad sectors and several more specific subsectors or industries. The financial industry welcomed the GICS, and the new classification system enjoyed widespread acceptance and universal adoption.
The 11 GICS sectors are:
1. Communication services
2. Consumer discretionary
3. Consumer staples
4. Energy
5. Financials
6. Health care
7. Industrials
8. Information technology (IT)
9. Materials
10. Real estate
11. Utilities
Today, the GICS is ubiquitous and, for all intents and purposes, is the official industrial classification system of Wall Street. The GICS allows investors at all levels to easily compare the performance of stocks within a sector, or to compare overall sector performance against other sectors or the market as a whole. It’s also a very useful tool for security selection and in portfolio construction.
Today more than ever, diversification is a critical aspect of building a portfolio. Sectors go in and out of favor quickly, and usually without advanced notice. Knowing a stock’s GICS sector helps investors avoid dangerous over-concentration risk. Thankfully, excellent companies with plenty of growth potential can be found in every one of the 11 GICS sectors.
This timely list is a case in point. It includes 11 high-quality stocks that are not only leaders in their respective sectors but are dramatically outperforming the stock market — as measured by the S&P 500 — year to date:
| Stock | Sector | Forward Dividend Yield* | Market Capitalization* |
| T-Mobile US Inc. (TMUS) | Communication services | 1.4% | $299 billion |
| Tapestry Inc. (TPR) | Consumer discretionary | 2.0% | $14 billion |
| Coca-Cola Co. (KO) | Consumer staples | 2.9% | $298 billion |
| Hess Corp. (HES) | Energy | 1.4% | $44 billion |
| American International Group Inc. (AIG) | Financials | 2.0% | $48 billion |
| CVS Health Corp. (CVS) | Health care | 4.1% | $84 billion |
| Waste Management Inc. (WM) | Industrials | 1.5% | $89 billion |
| SanDisk Corp. (SNDK) | Information technology (IT) | — | $6 billion |
| Newmont Corp. (NEM) | Materials | 2.3% | $52 billion |
| Welltower Inc. (WELL) | Real estate | 1.8% | $93 billion |
| Consolidated Edison Inc. (ED) | Utilities | 3.3% | $37 billion |
*As of March 12 close.
T-Mobile US Inc. (TMUS)
Sector: Communications services
T-Mobile is a wireless telecom powerhouse with a market cap around $299 billion. This mobile phone service and equipment company operates more than 5,000 brick-and-mortar retail locations that nicely complement its thriving and fast-growing online presence. It’s become one of the most well-known wireless providers in the U.S. and around the world.
T-Mobile offers contract and pay-as-you-go mobile plans, broadband internet services, wireless equipment that includes the latest phones, tablets of all sizes and a wide range of high-tech and low-tech accessories. It has been very adept at capitalizing on the surging demand for mobile connectivity and data demand.
TMUS has a current yield of 1.4%.
Tapestry Inc. (TPR)
Sector:Consumer discretionary
New York City-based Tapestry is the successor company to luxury handbag and accessory company Coach, which was founded in 1941 and is still one of the firm’s most valuable brands.
TPR has grown into a $14 billion leader in portable luxury goods. It owns several prized brands, including Kate Spade, Stuart Weitzman and the aforementioned Coach. The company’s bread and butter is women’s bags, purses and other high-end accessories. It has a smaller but thriving business in men’s wallets and briefcases and is quickly branching out into specialized ladies’ apparel.
The company’s products can be purchased through its online stores or any of its more than 1,400 brick-and-mortar retail outlets. TPR is sustained by its reputation and high brand loyalty among affluent, brand-conscious shoppers.
Despite tariff concerns and a volatile stock market, TPR has turned in impressive year-to-date returns. TRP has appreciated around 6.5% so far this year, which compares very favorably to the S&P 500, which, as of March 12, is down around 5.5%.
TPR has a current yield of 2%.
Coca-Cola Co. (KO)
Sector: Consumer staples
KO’s stellar year-to-date performance of more than 11% becomes even more impressive when you consider that its most formidable non-alcoholic beverage rival, PepsiCo Inc. (PEP), is down about 2.5% for the year.
With a market cap of about $298 billion, KO is the largest soft drink company in the world. The company operates in over 200 countries and is a market share leader in many of them. It sells sodas, juices, sports drinks, bottled water and more, through its vast, global network of bottlers, distributors and retail partners.
KO’s iconic brands include Coke, Diet Coke, Sprite, Dasani and many more well-known names. Moderating inflation rates and a strong labor market have helped KO by bolstering consumer spending. But its excellent performance so far this year compared to its competitors and the broad market is a function of excellent operational execution.
The stock boasts a dividend yield of about 2.9%.
Hess Corp. (HES)
Sector: Energy
Hess can trace its roots back 106 years to 1919. Today, Hess is a major, $44 billion player in the hydrocarbon energy industry. It has operations in many countries but does most of its business in the U.S. and Southeast Asia.
The company has two major divisions: exploration and production, and midstream. The exploration and production segment develops oil and natural gas wells and refines crude resources into usable energy. The midstream segment stores and transports the company’s products to distributors in its areas of operation.
Geopolitical tensions and falling oil prices have made it difficult for energy companies to make money. Hess, however, has been a standout performer. HES has appreciated about 8.2% year to date, outperforming energy giants Exxon Mobil Corp. (XOM) and Schlumberger Ltd. (SLB).
The stock’s dividend yield is currently around 1.4%.
American International Group Inc. (AIG)
Sector:Financials
AIG is a $48 billion insurance and financial services company based in New York. It offers property, casualty and life insurance products and services in the U.S. and 70 other countries.
In a difficult inflation and interest rate environment many financial firms have found challenging, AIG has managed to thrive. The stock is up about 11.6% year to date while much of the rest of the market has stagnated or fallen.
In addition to personal insurance, AIG offers disaster coverage, general liability, commercial auto insurance, worker’s compensation, aviation insurance, trade and credit risk coverage, and several other profitable lines. As part of its investment portfolio, the company also generates significant revenue by making commercial mortgage loans to real estate developers and property owners.
AIG has a current dividend yield of about 2%.
CVS Health Corp. (CVS)
Sector: Health care
CVS has been well known in the chain drug store space since the mid-1960s, but the company is much more than a retail pharmacy.
CVS is an $84 billion leader in the health care sector serving millions of customers every day through its more than 9,000 retail outlets and its extensive health care insurance and benefits management segments.
The company’s three divisions — health care benefits, health services and consumer wellness — combine to generate more than $90 billion a quarter in revenue. In recent years the company’s mail order pharmacy has evolved into a thriving online pharmacy operation offering medical consultations, prescription drugs and over-the-counter medications to customers over the internet.
The stock, which has a current yield of 4.1%, is up more than 47% year to date in a very difficult market.
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Waste Management Inc. (WM)
Sector: Industrials
With a market cap of close to $90 billion, Waste Management is North America’s largest provider of waste processing and environmental services. This Houston-based company serves nearly 20 million residential, commercial and municipal customers in the U.S. and Canada.
WM’s core services include waste collection, waste disposal, plastics, paper and metal recycling and the production of waste-to-energy natural gas.
The size and scale of its operations and its unmatched logistical and waste management infrastructure make this company the stand-alone leader in its industry. WM owns more than 600 waste treatment facilities, including the largest network of landfills and waste transfer stations in North America.
2025 has been a tough year for stocks so far, but despite lackluster performance from the rest of the U.S. stock market, WM has managed to climb 10.1% year to date.
Additionally, WM has a current dividend yield of 1.5%.
SanDisk Corp. (SNDK)
Sector:Information technology
Founded in 1988, SanDisk was a pioneer in the emerging flash storage industry. The company was acquired by Western Digital Corp. (WDC) in 2016, but was recently spun off in a deal that was announced in 2023.
The flash drives that made SanDisk famous are quickly fading into obscurity, but the company has evolved and innovated to stay relevant in the fast-moving tech sector. Today it produces solid state drives, memory cards and embedded storage components for mobile phones, personal computers and large data centers.
The artificial intelligence-driven data center boom may, in fact, be one of the main catalysts for this stock’s standout performance so far in 2025. Year to date, SNDK is up close to 39%. Almost all of that gain has come in the last 30 days since its separation from Western Digital became official.
Incidentally, company-specific historical data on this $6 billion company is hard to find because it’s been owned by Western Digital for the last nine years. Investors will have to rely on Wall Street analysts and research firms to get their information, at least for a while.
Newmont Corp. (NEM)
Sector:Materials
Newmont is one of the world’s leading gold exploration, mining and production companies. The company is based in Denver and has a market cap of $52 billion. NEM has operations in North America, South America, Australia and Africa. According to company guidance, NEM is expected to produce 5.9 million ounces of gold in 2025.
In addition to gold, NEM extracts copper, silver, zinc and lead as byproducts of its mining operations. This provides the company with a well-diversified revenue stream.
The rising price of gold has helped drive the stock this year — year-to-date performance tops 23% — but that is not the only investment rationale for buying this company. NEM has committed to investing $525 million in exploration and development in 2025. Those efforts are very likely to bear fruit in the future.
The stock pays an annual forward dividend of 2.3%.
Welltower Inc. (WELL)
Sector:Real estate
Welltower is one of those rare companies that can almost be said to operate in two sectors. Welltower is a real estate investment trust (REIT) that operates in the health care industry. The company is a S&P 500 component stock with a market cap of over $93 billion. That makes it the largest health care REIT in the U.S.
Founded in 1974 in Ohio, Welltower still makes its headquarters in that state. It’s become one of the most respected names in the senior assisted living and post-acute care industries. The company has an equity interest in more than 3,000 individual care facilities and medical office buildings. Most of its properties are in the U.S., but it operates in the UK as well.
The stock has been steadily climbing all year and has achieved a 15.3% year-to-date return as of March 12. Because WELL is a REIT, investors can expect a steady dividend. The stock’s current yield is 1.8%.
Consolidated Edison Inc. (ED)
Sector:Utilities
Electric utilities have been a bright spot in an otherwise challenging market, and ED stock is no exception. The company has already turned in year-to-date performance topping 16% in 2025 and we aren’t even in the second quarter yet.
Consolidated Edison is a regulated gas and electric utility company operating in New York City, Westchester County, New York and northern New Jersey. The company is more than 130 years old and can truly be considered one of Wall Street’s original blue-chip stocks.
ED has a solid customer base of more than 3.7 million electricity customers and more than 1.1 million natural gas customers. These include both residential and commercial customers who will combine to generate an estimated $16 billion in revenue for the company in 2025.
Like most utilities, ED pays a healthy dividend, with the current yield sitting at 3.3%.
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Top Stocks to Buy in All 11 Sectors originally appeared on usnews.com
Update 03/13/25: This story was previously published at an earlier date and has been updated with new information.
