In 2025, technology stocks like NXP and Microsoft thrived alongside AI and cloud computing. Communication services, led by Alphabet, saw growth with top picks like Omnicom and Comcast. Utilities, despite a retreat in October, outperformed, with top picks including Edison and Alliant. Financials excelled, but valuations are rich. Real estate struggled, but Americold and Healthpeak are top picks. Consumer defensives, energy, basic materials, industrials, and healthcare all performed well with top stock picks to watch.

Read more at Morningstar: US Stock Sector Outlooks: Morningstar’s Top Picks Across the Market