The strongest stocks are in the strongest industries. Makes sense when you say it like that. But how can we identify the strongest industries out there? Should we use relative strength? Should it be based on the performance of the underlying stocks? Let’s not sit here and over complicate the situation. We’ve already got an easy way to identify these industries, just like we’ve already got the stock side figured out.

You may already be familiar with the Zacks Rank. Using earnings estimates from analysts, our secret sauce comes up with those stocks which have the most agreement, largest magnitude, greatest potential upside and increases in consensus to come up with stocks that have the greatest likelihood of success in the intermediate term. That’s what the Zacks Rank is really all about. You don’t have to just take my word for it. How does 26% annualized since 1988 sound? Sounds pretty good to me.

We’re not one trick ponies over here though. We aggregate this data across industries, helping us find entire swaths of the market that have been experiencing earnings estimate revisions to the upside. We can easily uncover the strongest pockets of the market by using the Zacks Industry Rank and looking for stocks within these top industries.

Below I’ve compiled a list of five stocks that are Zacks Rank #1 (Strong Buy) stocks in industries that are in the Top 5% of the 265 industries we rank with our Zacks Industry Rank. This way, you can throw money at top stocks that are in top industries.

Netgear (NTGR – Snapshot Report)

Netgear is part of the Computer Networks industry that currently ranks in the Top 3% of our Zacks Industry Rank. The company provides networking products to consumers, businesses, and service providers. The company operates in three segments: Retail, Commercial, and Service Provider. The Retail segment offers home networking, home video security, storage, and digital media products. The Commercial segment provides business networking, storage, and security solutions. The Service Provider segment offers home networking hardware and software solutions, as well as 4G LTE hotspots sold to service providers for sale to their subscribers. The company also offers commercial business networking products, such as Ethernet switches.