Investing in America: 3 Promising Industries to Watch

Archive edition · Market data and company circumstances reflect 26 July 2025, when this newsletter was sent.

Top U.S. Sectors to Back in 2025

Despite rising political tensions, unpredictable trade policies, and a divided economic outlook, U.S. markets continue to prove their strength. Resilience is not just a theme, it is showing up across key industries that are quietly driving performance.

In this edition, we spotlight three sectors that stand out in today’s uncertain environment:

Transportation. Beverages. Banks.

Each offers a unique lens into the durability of the American economy and the opportunities still unfolding for investors who stay the course.

The U.S. Advantage

Before diving into sectors, let us reframe the bigger picture.

While critics argue that political instability, ballooning debt, and threats to institutions like the Federal Reserve or the Supreme Court will erode “U.S. exceptionalism,” history shows otherwise.

The U.S. has repeatedly emerged stronger after periods of stress—thanks to three enduring pillars:

• Institutional Independence: Courts have upheld the sanctity of contracts and shareholder rights for over a century. Fed autonomy has protected markets from political overreach, even during populist regimes.
• Cultural Innovation: From railroads to Artificial Intelligence, U.S. capitalism enables risk-taking that drives innovation. No other country integrates academia, government R&D, and private capital at such scale.
• Deep Markets: The U.S. remains the global hub for venture funding, IPOs, and deep institutional liquidity. This ensures that companies, even during downturns, have access to the capital needed to evolve.

Transportation

When you think of investing, shipping companies probably do not come to mind first — but they should.

The U.S. moves billions of dollars worth of goods by ship, truck, and rail. And right now, trade with China is getting rocky. Ships coming from China are down 13% compared to last year. Tariff worries are making companies cautious. Some are rushing to import goods early before potential tariffs hit. Others are waiting it out.

That means short-term chaos, but also opportunities for the companies that help businesses navigate it.

Who benefits?

• Freight forwarders like CH Robinson (CHRW) and Expeditors (EXPD) step in when shipping is messy. These companies help businesses plan smarter, and they often thrive during unpredictable times.
• FedEx (FDX) and UPS are also set to benefit, especially if last-minute orders flood in later this year for the holiday season.
• Rail companies like Union Pacific (UNP) and JB Hunt (JBHT) could see a boost if ports on the West Coast get busy.

Why this matters:

If tariffs ease or the economy holds up, there could be a big wave of last-minute demand — and these transport names will be in the driver's seat.

Beverages

Beverage sales—particularly in convenience stores—are a proxy for discretionary spending, brand loyalty, and premiumization trends in the U.S. consumer economy.

A recent survey reveals strong acceleration in beverage sales, from +1.0% in Q1 to +3.4% in Q2 — a jump from just 1% earlier this year. That may sound small, but it is a big deal in this business. It shows consumers are still spending, especially on things they enjoy like energy drinks, premium beer, and better-for-you sodas.

That tells us people might be cutting back in some areas, but they are still reaching for comfort and caffeine; and brands are cashing in.

Who is winning?

• Monster Energy (MNST): Monster’s latest drinks like Ultra Vice Guava are doing well, and the entire energy drink category is expected to grow 12% this year. That is double last year’s pace.
• Constellation Brands (STZ): They own Modelo, and it is gaining major popularity, especially over the July 4th weekend.
• Celsius (CELH): Riding the “functional beverage” wave, Celsius is trendy, healthy-ish, and a favorite among younger buyers.

Why this matters:

Even in a cautious macro environment, the American consumer continues to favor premium and functional beverage categories. MNST and STZ remain two of the most compelling beverage plays with strong retailer feedback and attractive valuations.

Banks

Banks do not often make headlines, unless something goes wrong. But beneath the surface, many are actually doing better than expected.

Card companies, regional banks, and lenders reported solid earnings last quarter. Even with higher interest rates and cautious spending, loan growth is improving, and credit losses are staying low.

Who is winning?

• American Express (AXP): It posted a 20% jump in card fees. Travel and restaurant spending is still strong among its high-income customers.
• Regions Financial (RF): This bank raised its outlook for loan growth and revenue in the second half of 2025.
• Truist (TFC): While it got hit by higher costs early in the year, its loan pipeline looks promising, especially if the Fed cuts rates.

Why this matters:

Good loan growth means people and businesses are still borrowing and that usually means confidence in the economy. Banks like these may also be undervalued, giving investors a solid long-term opportunity.

Why We Still Believe in America

Despite all the noise, from political uncertainty to rising debt, we remain confident in America’s long-term investment potential.

What sets the U.S. apart is not just size, but structure. Its independent institutions like the Federal Reserve and the courts provide a stable foundation that protects investors and ensures the rule of law.

Add to that culture of innovation, where ambition and risk-taking are celebrated, and you have a country that consistently produces world-changing ideas — from Silicon Valley breakthroughs to biotech advancements.

Finally, the U.S. is home to the world’s deepest capital markets, offering unmatched access to funding, liquidity, and investor trust. These pillars — strong institutions, innovation, and market depth — are why we continue to bet on America.

Archive note

This article preserves the analysis in our weekly newsletter sent 26 July 2025. Market prices, forecasts and company circumstances reflect the time of publication and may have changed.

This material is general information, not personal financial advice or a recommendation to trade. Investing and trading involve risk, including loss of capital.