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3 Sector ETFs & Stocks to Shine on Upbeat March Jobs Data

Sanghamitra Saha

U.S. employers added 196,000 new jobs in March, after an upwardly revised 33,000 in February. The number breezed past market expectations of 180,000. The unemployment rate was 3.8% last month, in line with market expectations.

In March, average hourly earnings increased 4 cents to $27.70, after a 10-cent gain in February. In a year, average hourly earnings have grown by 3.2%.

Winning Sector ETFs

Against this backdrop, investors should bet on ETFs that are the biggest beneficiaries of the March jobs data report. Below we have highlighted some of these that will likely see smooth trading in the days ahead.

Health Care

Jobs in the health care sector grew by 49,000 in the month, wherein ambulatory health care services and hospitals added a respective 27,000 and 14,000. Per tradingeconomics, health care employment has increased by 398,000 in a year’s time (read: Health Day Checkup of Medical ETFs: 5 Top Picks).

This trend puts the spotlight on First Trust Health Care AlphaDEX Fund FXH. The fund has considerable exposure to Health Care Providers & Services and Health Care Equipment & Supplies. Biotechnology also has substantial focus on this Zacks Rank #2 fund.

Investors should also place their bet on Tenet Healthcare Corporation THC, a Zacks Rank #2 multinational investor-owned health care services company. It comes from a top-ranked Zacks industry (top 29%) and top-ranked Zacks sector (top 19%).

Food & Beverage Places

In March, employment in food services and drinking places rose by 27,000, matching its average monthly gain last year. Consumer Staples Select Sector SPDR Fund XLP may see some solid trading in the near term after the jobs report.

Zacks Rank #2 Starbucks Corporation SBUX can also be tapped by investors. It belongs to a top-ranked Zacks industry (top 43%).

Construction

About 16,000 jobs were created in the construction sector in the month. In the last 12 months, the sector has generated about 246,000 jobs. Obviously, such positive data makes us keep a close watch on Invesco Dynamic Building & Construction ETF PKB. The underlying index of the fund picks building and construction stocks on the basis of factors like growth, stock valuation and investment timeliness (read: Why Housing ETFs & Stocks Could Spring Higher).

EMCOR Group Inc. EME, with a Zacks Rank #2 (Buy), provides electrical and mechanical construction, and facilities services in the United States.

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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
 
Consumer Staples Select Sector SPDR Fund (XLP): ETF Research Reports
 
Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports
 
First Trust Health Care AlphaDEX Fund (FXH): ETF Research Reports
 
Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
 
Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
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