Research firm IHS Global Insight predicts IT and telecom stocks will see “robust growth” in sales and earnings throughout 2010 and 2011.
Analysts expect tech sectors to grow at twice the pace of gross domestic product with telecom expected to jump about 50 percent higher than the overall U.S. stock market.
The findings come from IHS Global Insight’s latest global forecast for sectors holding the most promise for investors. Not only will IT and telecom stocks grow, the firm said, but equity valuations should remain at attractive levels that yield enviable dividends and payout ratios.
Other sectors, however, aren’t likely to see such positive results as the U.S. emerges from the worst recession in years. That’s because consumers will spend again, but more cautiously than in the past because of high debt, depleted wealth, tight credit and weak labor markets, said IHS Global Insight.