What to watch

It’s not just ‘popular’ stocks that go up

Wall Street’s most high-profile stocks — think Tesla, Facebook, Apple — get the most press coverage, the most PR, the most adulation. And the most “buy” orders from Main Street investors looking to bolster their 401(k)s.

But that doesn’t mean investors should overlook less glamorous stocks. Quite often, it’s the stocks and industry groups investors aren’t watching that quietly rise in value, causing them to miss out on gains.

This year is a perfect example. While the S&P 500’s tech sector has posted a gain of 18% — the best of all 11 sectors — there have been a slew of winners that have gone virtually unnoticed. Many stocks that fly under the radar, and which are benefiting from stronger global growth, are posting bigger gains than tech.

Heading into the week, auto parts makers were up more than 25%. Casinos and gaming companies returned more than 50%. Homebuilding stocks, helped by still-low interest rates, jumped 30%. The hotels, resorts and cruise lines group has booked gains of 25%. “Sin” stocks have been on fire, with tobacco shares up nearly 20% and distillers and vintners nearly 22%. Health care equipment stocks have jumped nearly 25%. Railroads are up 17%.

The gains in different corners of the market are viewed as healthy. Says Gary Kaltbaum, president at Kaltbaum Capital Management: “It has been hotels, cruise lines and now housing, airlines, rails and more recently biotech. It is not just tech.”