Everyone thinks you have to bet on tech to get big returns.

Not true. In fact, several sectors have quietly outperformed tech this year—and most investors aren’t even looking at them.

Today’s special edition breaks down 3 of those sectors, complete with AI model picks, analyst ratings, and upside targets that might just make you rethink your current allocation.

Yes, AI is bleeding into nearly every industry (your pest control guy probably has a ChatGPT side hustle), but the stocks we’re covering aren’t part of the official “Technology” sector. And that matters—because when we say these sectors are beating tech, we mean they’re outperforming the whole group, not just individual names.

Here’s your benchmark: the Technology sector is up 7.56% year-to-date.

Now, let’s see who’s beating it.

Let’s start strong: the Basic Materials sector is up 15.99% YTD—that’s more than double tech’s 7.56% return.

Why? Two reasons: tariffs and gold.

New tariffs on steel, aluminum, copper, and more have driven up prices—and investors are pivoting fast. Domestic materials companies are now filling the gaps, and some of the biggest names are booming.

Just look at the headlines:

Meanwhile, gold and silver are playing their usual safe haven roles—up 36.19% and 24.51% respectively.

Anglogold has been posting some solid metrics and sending serious signals.

On Wednesday, the global gold miner just announced the expansion of its presence in Nevada through the $111 million acquisition of Augusta Gold, bolstering its US-based mineral resources.

$AU has a 64% “buy” rating among 11 analysts, according to Marketwatch. But AltIndex gives it an AI Score of 78/100—the highest of any company in the entire metals industry right now.

Current price: $47.66
AltIndex’s 6 Month Price Target: $55.91

That’s a potential 18% upside on Anglogold Ashanti in the next half year. We’ll be keeping an eye on it—you?

As a whole, Industrials are up 14.75% YTD—significantly higher than tech’s 7.56%.

The trade wars drove a lot of press in the Industrials sector during H1 of 2025 as well—US-based manufacturers and defense companies benefitted from the forced reshoring effect that tariffs have had on countless industries so far.

Boeing (up 33.41% YTD) made headlines again and again as Trump seemed to almost wield the company as a weapon of trade. $BA was the first US company to land big deals in the depths of the tariff deadlock, securing a 32-plane deal with British Airways and a deal for up to 210 planes with Qatar Airways in May. Just this past Wednesday, Bahrain’s crown prince announced a $17B investment in the US, including 12 Boeing jets.

And when Boeing does well, the companies that manufacture its engines do well too. GE Aerospace and Howmet Aerospace Inc. have had pretty fantastic years—$GE is up 57.47%  and $HWM is up 66.31% YTD.

But our pick for Q3 isn’t Boeing—it’s an electrical manufacturer with solid fundamentals.

Coming in with an even higher AI Score than Anglogold, Powell Industries is a manufacturer of custom-engineered electrical energy solutions with a 77/100 score from AltIndex and a 66% buy rating from analysts at the moment (2 buys, 1 hold).

$POWL is sending solid signals on many fronts—good revenue and net income growth, huge EBITDA increases YoY and QoQ, and positive employee sentiment, too. The stock is down 2.2% YTD, but it’s up 53.86% over the past year.

Current price: $228.25
AltIndex’s 6 Month Price Target: $250.11

Which comes out to a potential 15.6% upside on $POWL, according to AltIndex’s model.

We’re highlighting one top pick from each of these sectors today, but with AltIndex, you can see all the best stocks in every sector and industry on demand.

This final sector has a YTD performance of 12.12%. We will say that Morningstar’s Chief US market Strategist David Sekera thinks the Financial Services sector is actually overvalued going into H2 of 2025—mainly due to how much of a tear the big banks were on earlier this year. Goldman Sachs rose 40% over the past year, Wells Fargo is up 30.87% on the year, JP Morgan is up 33.67%—you get the idea.

AltIndex doesn’t like the big bank stocks right now either, giving most of them sell or hold signals at the moment. Next week will be earnings week for the big banks, though, and we’re interested to hear what they have to say—and what markets will think about it.

The payments industry saw multiple large mergers & acquisitions in the first half of 2025—10 total deals of $5B or more. The space is feeling the jitters, though, as stablecoins begin to move more and more into the mainstream (and into legislation—the GENIUS Act passed the House). Accordingly, our stock pick from the Financial Services sector is a payments platform that has made two acquisitions this year and is well-positioned for greater stablecoin adoption.

A payment platform that has evolved into a major cloud-based point-of-sale (POS) player, Shift4 is a stock with a 79% analyst buy rating and a 73/100 AI Score. We think it’s because of the unique position Shift4 finds itself in—or has created for itself purposefully.

Some key information on the company:

Revenue is up 31.48% YoY, and net income is up an impressive 90.29% YoY. With a diversified model, strong growth metrics, and early positioning in crypto payments, Shift4 might be one of the financial stocks still playing offense in H2 2025.

Current price: $106.56
AltIndex’s 6 Month Price Target: $123.22

Upside potential is 15.6%.

Even in a tech-dominated news cycle, major opportunities are emerging in sectors that often get overlooked. If you’ve only been watching silicon and software, it might be time to widen the lens.

Hope you got value from this guide—let us know what you thought!

- Brandon

The information provided in Stocks & Income is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. Stocks & Income is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable.