Up until the last month or so, technology stocks dominated Wall Street in 2017. But just as the New Year appeared on the horizon, big investors started to cash out and shift their money elsewhere. The advent of volatility in the tech sector inspired others to rethink their strategies too, and now—just a few days before 2018—many are left wondering which sector will emerge as the top choice in the coming months.

Despite December’s volatility, it is safe to say that 2017 was the year of the tech stock. According to our data, the “Computers and Technology” group has gained over 29% year-to-date, outpacing the respectable 22% gain of the S&P 500.

And unlike tech’s other notable rally, that of the “dot-com” era, this year’s tech surge has been fueled by solid top and bottom line growth. In fact, the average P/E ratio of our tech group currently sits at 23.65, which compares favorably to the dot-com era’s average that routinely soared into the 200s.

But tech stocks have dipped over the last month, implying that Wall Street is taking its profits and moving money into different sectors ahead of the New Year. Fortunately, the Zacks Sector Rank is already indicating which sector is heading into 2018 with the strongest prospects.

Indeed, in what may come as a surprise to some, our “Oils and Energy” group currently sits atop the list of 16 different sectors covered here at Zacks. The Zacks Sector Rank is calculated by taking the average Zacks Rank of each individual stock that makes up these groups, so investors can be assured that “Oils and Energy” is home to a plethora of strong picks right now.

There is plenty of information to dig into here, but first let us take a look at the recent price performance in the energy sector compared to that of the broader market:

As we can see, the energy sector has really started to pick up steam over the past month, indicating that it has attracted some of the investors looking to rebalance at the end of the year.

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