US semiconductors and energy lead, while food products and mortgage REITs remain deeply out of favor
Growth-heavy technology and resource industries stay on top as rate‑sensitive and low‑margin defensives lag
IMGELD (Date: May 24, 2026 )
Strength is concentrated in Semiconductors & Semiconductor Equipment, Electronic Equipment, and Energy-linked groups, while Food Products, Mortgage REITs, and parts of Diversified Consumer Services sit at the bottom of the rankings. Technology and cyclical industries with clear earnings and M&A catalysts are outperforming, contrasted with structurally pressured consumer and rate‑sensitive segments. This dispersion reflects investors favoring growth, pricing power, and exposure to geopolitical and AI infrastructure themes over weaker demand and higher funding‑cost stories.
Top 5 Strongest Industries
(Long bias)
Semiconductors & Semiconductor Equipment
Final Score: 96.50
Before: #1 → Now: #1
Why they are strong: Semiconductor stocks remain leadership names as investors focus on a “new bull market” in software and AI‑related technology spending that relies heavily on advanced chips and compute infrastructure.
Key Players: NVIDIA, Intel, Advanced Micro DevicesElectronic Equipment, Instruments & Components
Final Score: 94.22
Before: #2 → Now: #2
Why they are strong: Electronic components suppliers are benefiting from heightened demand for secure networking and hardware as US regulators clamp down on certain foreign‑made routers, reinforcing onshore and trusted‑vendor supply chains.
Key Players: Texas Instruments, TE Connectivity, CorningConsumer Staples Distribution & Retail
Final Score: 93.06
Before: #3 → Now: #3
Why they are strong: Large US consumer staples distributors and retailers are seeing renewed investor interest as they are central to servicing resilient everyday demand, and are increasingly important in supplying rapidly growing end‑markets such as AI‑driven data center and infrastructure ecosystems.
Key Players: Walmart, Costco Wholesale, KrogerMetals & Mining
Final Score: 92.67
Before: #4 → Now: #4
Why they are strong: Metals and mining companies are being viewed as strategic beneficiaries as the U.S.‑Iran conflict and related geopolitical tensions rattle global commodity markets and push investors toward resource and materials exposure.
Key Players: Freeport-McMoRan, Newmont, Southern CopperOil, Gas & Consumable Fuels
Final Score: 88.92
Before: #6 → Now: #5
Why they are strong: Energy producers are supported by elevated geopolitical risk in the Middle East, which is splitting global markets into clear winners and losers and keeping investor attention on oil and gas supply security.
Key Players: Exxon Mobil, Chevron, ConocoPhillips
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Bottom 5 Weakest Industries
(Short bias)
Diversified Consumer Services
Final Score: 15.11
Before: #52 → Now: #52
Why they are weak: Parts of the consumer services complex, particularly restaurant and discretionary service operators, are struggling as 2026 begins, with analysts highlighting weak restaurant stock performance and the need to be highly selective in the space.
Why they are weak: Parts of the consumer services complex, particularly restaurant and discretionary service operators, are struggling as 2026 begins, with analysts highlighting weak restaurant stock performance and the need to be highly selective in the space.
Key Players: Service Corporation International, Bright Horizons Family Solutions, Adtalem Global EducationFood Products
Final Score: 16.23
Before: #53 → Now: #53
Why they are weak: Traditional food manufacturers are under pressure as investors rotate toward higher‑growth and M&A‑rich segments like specialty pharmaceuticals, illustrated by large cross‑border deals such as Italy’s Angelini buying US‑based Catalyst Pharma.
Key Players: General Mills, Kraft Heinz, KelloggEntertainment
Final Score: 26.52
Before: #51 → Now: #54
Why they are weak: Legacy entertainment names remain challenged as growth and legal energy in the broader media ecosystem shifts toward areas like book publishing and related rights markets, where firms such as Bertelsmann see faster‑growing opportunities than traditional filmed entertainment.
Key Players: Walt Disney, Warner Bros. Discovery, Paramount GlobalMortgage Real Estate Investment Trusts (REITs)
Final Score: 28.73
Before: #55 → Now: #55
Why they are weak: Mortgage REITs are lagging as capital and investor attention in US real estate shifts toward large, scale‑driven equity REIT platforms and megamergers in apartments, which are reshaping expectations for where value will accrue in the property sector.
Key Players: Annaly Capital Management, AGNC Investment, Starwood Property TrustHotels, Restaurants & Leisure
Final Score: 31.38
Before: #56 → Now: #56
Why they are weak: Hotels, restaurants and travel‑linked leisure names are under pressure as restaurant stocks struggle and travel‑exposed equities sell off amid US‑Iran conflict‑driven disruptions that analysts describe as the worst since the pandemic.
Key Players: Marriott International, McDonald’s, Caesars Entertainment
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Additional Readings
Semiconductors & Semiconductor Equipment: Software and AI spending viewed as core driver of a new tech bull phase (CNBC, 2026-05-27)
New bull market in software stocks hinges on this reportElectronic Equipment, Instruments & Components: US tightens oversight on foreign networking hardware (Reuters, 2026-03-23)
US regulator bans imports of new foreign-made routers, citing security concernsConsumer Staples Distribution & Retail: Utilities and infrastructure players become critical to AI‑driven demand centers (CNBC, 2026-05-18)
NextEra Energy to buy Dominion in deal that unites two key players in race to power AI data centersMetals & Mining: Geopolitical conflict reshapes global winners and losers in commodities and capital markets (Reuters, 2026-05-27)
Iran war splits global markets into clear winners and losersOil, Gas & Consumable Fuels: Energy markets and related equities respond to U.S.‑Iran conflict dynamics (CNBC, 2026-03-02)
Josh Brown highlights three chemical stocks as U.S.-Iran conflict rattles global marketsDiversified Consumer Services: Restaurant‑linked consumer companies face a difficult start to 2026 (CNBC, 2026-03-15)
Restaurant stocks are struggling to start 2026. Where to find buying opportunitiesFood Products: Pharma and specialty healthcare deals are drawing capital away from slow‑growth staples (Reuters, 2026-05-07)
Italy’s Angelini to buy US Catalyst Pharma in $4.1 billion state-backed dealEntertainment / Media: Book and media groups pursue legal and growth strategies around US content markets (Reuters, 2026-03-26)
Bertelsmann cranks up legal fight against US book bans as market growsMortgage REITs / Residential REITs: Scale M&A is reshaping expectations in the listed US apartment market (CNBC, 2026-05-22)
What the AvalonBay, Equity Residential megamerger means for the apartment industry and rentsHotels, Restaurants & Leisure: Mixed backdrop for restaurants and travel‑exposed leisure stocks (CNBC & Reuters, 2026-03-15 & 2026-03-02)
Restaurant stocks are struggling to start 2026. Where to find buying opportunities
Travel stocks tumble as US-Iran conflict sparks worst disruption since pandemicAerospace & Defense: Investor appetite for defense exposure reflected in new US IPO plans (Reuters, 2026-05-26)
Applied Aerospace & Defense eyes $3.59 billion valuation in US IPOBuilding Products: Large strategic M&A underlines ongoing consolidation in US building products (Reuters, 2026-04-19)
QXO strikes $17 billion deal to acquire building products distributor and installer TopBuild“