Stocks to watch in 2017 reflected a year of policy uncertainty, rising volatility, and sector rotation. Investors tracked names that could benefit from infrastructure spending, financials rebound, and early technology leadership. The following overview highlights sectors, catalysts, and metrics to monitor as you plan 2017 positioning.
Use the summary table as a quick scan of profile, valuation, and catalyst themes for the most discussed equities during the year. It is designed for rapid comparison while supporting deeper research.
| Company | Sector | Ticker | Valuation Metric | Catalyst for 2017 |
|---|---|---|---|---|
| General Electric | Industrials / Financials | GE | P/E 12x, P/B 1.3x | Infrastructure capex, divestitures, lower rates |
| JPMorgan Chase | Financials | JPM | P/E 11x, P/B 1.0x | Rate lift, reduced penalties, earnings leverage |
| Apple | Technology | AAPL | P/E 14x, P/S 3.5x | Services growth, iPhone cycle, emerging markets |
| Dominion Energy | Utilities | D | P/E 16x, P/B 1.7x | Stable cash flows, regulated returns, M&A optionality |
| Celgene | Healthcare | CELG | P/E 35x, P/S 7x | Biologics pipeline, Revlimid growth, cost discipline |
Financials Positioning on Policy Shifts
Banks and regional lenders became focal points as 2017 began with expectations of lighter regulation and higher interest rates. Net interest margins appeared pressured in 2016, but policy easing and a flatter curve were seen as manageable. Institutions with strong capital, lower nonperforming loans, and diversified fees were highlighted as stocks to watch when assessing financials.
Industrial Exposure to Infrastructure Spend
Engineering and Heavy Construction Names
Companies with government and transportation exposure drew attention as fiscal stimulus talk intensified. Order backlogs, project visibility, and domestic content assumptions shaped guidance updates. GE and select industrials became stocks to watch because of their positioning on infrastructure themes and potential policy tailwinds.
Defense and Aerospace Segments
Defense equities responded to budget deliberations and modernization plans, with longer cycle names attracting scrutiny. Contract timing, backlog strength, and geopolitical risk drove volatility. Investors evaluated names that could sustain relevance through multiyear procurement processes.
Technology Growth and Valuation Checkpoints
Large-cap tech delivered steady cash flow growth while smaller innovators extended valuation multiples. Cloud adoption, mobile engagement, and data monetization underpinned stories for 2017. Apple remained a core holding amid services expansion, while names like Celgene reflected higher multiples priced to future innovation.
Key Takeaways on 2017 Stock Selection
- Monitor policy impacts on financials, particularly rate sensitivity and regulatory relief.
- Track infrastructure-related order flow and government budget developments.
- Balance growth multiples with cash flow durability in technology and biopharma.
- Use valuation checkpoints and earnings visibility to prioritize names to watch.
- Diversify across sectors to manage volatility while capturing thematic upside.
FAQ
Reader questions
How do rate expectations affect financials versus utilities in 2017?
Rising rates typically boost bank net interest income while putting downward pressure on utility valuations due to their high duration cash flows. This divergence made JPMorgan a commonly watched financial name and Dominion a defensive utility option.
What role did infrastructure policy play in defining stocks to watch 2017?
Anticipated fiscal spending on transportation and energy projects supported industrial and equipment companies. GE and select engineering firms were monitored closely for order flow and contract wins tied to public investment.
Why were biopharma names like Celgene relevant for 2017 observers?
Innovative biopharma offered growth stories that could offset macro uncertainty. Celgene benefited from strong pipeline visibility and pricing power, drawing attention as a high-multiple healthcare stock to watch.
How did technology service momentum influence Apple’s relevance in 2017?
Services provided recurring revenue and higher margins, supporting a rerating of Apple beyond device cycles. Growth in subscriptions and ecosystem stickiness kept it among the stocks to watch for total return investors.