This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Industries With the Best Business Prospects

BOSTON ( TheStreet) -- With the U.S. economy in tatters, the political system nearly broken and the stock market seesawing along to intermittent good and bad news, focusing on industries' prospects is the first step in getting a clear focus for an investment strategy.

What's more, as technology evolves and companies from abroad add to competition, U.S. businesses would do well to study money flows favoring certain sectors over others.

A ranking of industries by their long-term business outlook was constructed by IBISWorld, a Santa Monica, Calif., publisher of research and market analysis. The firm based its analysis on more than 700 industries, from Internet service providers to hospitals to fisheries.

IBISWorld's latest research has identified a handful of industries with some of the best prospects. They range from alternative-energy-infrastructure providers to privately run prisons. The firm's outlook over the next five years may help guide investors, businesses and even job-seekers. IBISWorld, however, didn't disclose specific companies in its research, choosing instead to break down the American economy into its functioning parts.

Mary Gotaas, an IBISWorld research analyst, told TheStreet that, among the factors the firm's analysts weigh in their rankings, are an industry's growth potential, barriers to entry that can influence competitiveness, the potential for exports and impact of imports, and sensitivity risk to external factors that could impact the industry, such as government regulations.

Five industries with some of the best business prospects follow:

Wind- and solar-energy companies are expected to post revenue growth of roughly 18% annually through 2016. Wind power is currently a $3.7 billion industry, and IBISWorld said it should benefit from lower equipment costs and government-funded initiatives to reduce greenhouse gas emissions and create an alternative energy infrastructure.

"Moreover, the government will mandate that certain downstream buyers buy renewable energy, further stimulating revenue," IBISWorld said.

Wind-industry leaders include NextEra Energy (NEE) and Xcel Energy (XEL - Get Report). Solar, now a relatively small industry, is seen benefitting from many of the same government incentives for alternative energy as wind.

On the downside, favorable market conditions are expected to lure more players into the industry, including low-cost manufacturers from countries such as China, and that will slightly offset the substantial growth prospects for the industry.

Leading solar companies include SunPower (SPWRA), First Solar (FSLR - Get Report) and NextEra.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $133.10 0.77%
DD $63.95 0.44%
FSLR $51.76 -0.38%
GE $30.07 0.60%
XEL $40.42 -1.00%


Chart of I:DJI
DOW 17,672.15 +11.44 0.06%
S&P 500 2,049.57 -1.06 -0.05%
NASDAQ 4,708.9850 -8.1090 -0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs