What are Bellwether stocks?
Company Stocks
1 Discussion
A bellwether stock is the stock of a company that has a strong position in its industry. These are sometimes referred to as blue-chip corporations and are market leaders in their respective industries. These firms' stocks define bellwether stocks due to their enormous market share and excellent earnings, as their stock market performance might be predictive of the overall state of the market and the economy at large. Rightfully so, bellwether stocks are also known as barometer stocks since they serve as proxies for the performance of a given industry and aid in the measurement of the stock market's and the economy's overall pulse.