The cyclical sector comprises industries that are sensitive to changes in the overall economy. These industries tend to perform well during periods of economic growth and expansion but often face challenges during economic downturns or recessions. Cyclical stocks are stocks of companies within these industries, which include automotive, retail, travel, and construction, among others. Investors who are interested in cyclical stocks can benefit from the upswings in the economy. But they must also be aware of the potential risks associated with downturns.
Investing in cyclical stocks can offer significant growth potential when the economy is strong. This comes as consumer spending increases and businesses invest in new projects. However, these stocks can be more volatile than their counterparts in more defensive sectors, as their performance is closely tied to the health of the economy.
When investing in cyclical stocks, it is crucial for investors to closely monitor economic indicators and be prepared to adjust their portfolios accordingly. This approach can help investors capitalize on opportunities while managing the risks associated with cyclical stocks. Taking this into consideration, let’s dive into three cyclical companies for your list in the stock market today.
Cyclical Stocks To Buy [Or Avoid] Now
Ford Motor Company (F Stock)
Starting off, Ford (F) is a leading global automotive manufacturer, known for its popular models such as the F-150 pickup truck, Mustang, and Explorer. The company is also investing heavily in electric vehicles, with the launch of the Mustang Mach-E and the upcoming electric F-150 Lightning.
Moreover, this month Ford Motors reported its first quarter 2023 financial results. Specifically, in Q1 2023 the company notched in earnings of $0.63 per share, and revenue of $41.5 billion. For context, Wall Street’s consensus estimates were earning estimates of $0.40 per share, with revenue estimates of $36.0 billion. What’s more, revenue advanced by 20.3% compared to the same period, the prior year.
YTD, shares of Ford Motor Company stock have increased by 2.53% so far. While during Monday’s late morning trading session, F stock is trading slightly lower by 0.21% at $11.96 a share.
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Marriott International (MAR Stock)
Second, Marriott International, Inc. (MAR) is a multinational hospitality company that operates a vast portfolio of hotel brands, including Marriott, Ritz-Carlton, and Sheraton. The company’s performance is closely linked to the health of the travel and tourism industry, which can be significantly impacted by economic fluctuations.
Earlier this month, Marriott reported better-than-expected first-quarter 2023 financial results. Diving in, the company announced earnings of $2.09 per share, with revenue of $5.6 billion. This is versus analysts’ consensus estimates for the quarter which were an EPS of $1.86 per share, along with revenue estimates of $5.4 billion. As a result, revenue increased by 33.7% on a year-over-year basis.
In 2023 year-to-date, Marriott International stock is up 19.28% so far. While, during Monday’s late morning trading session, shares of MAR stock are trading modestly lower on the day by 0.096% at $176.40 a share.
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The Home Depot Inc. (HD Stock)
Finally, Home Depot (HD) is the largest home improvement retailer in the United States, offering a wide range of products and services for homeowners and professional contractors. The company’s performance is heavily influenced by the housing market and consumer spending on home improvement projects.
At the beginning of this month, Home Depot announced the date and time it will host its 1st quarter of 2023 financial results. Specifically, the company reported that it will release its Q1 2023 results on Tuesday, May 16, 2023, before the U.S. stock market opens.
In 2023 year-to-date, Home Depot stock is trading lower on the year so far by 9.55%. Moreover, during Monday’s late morning trading action, shares of HD stock are trading lower on the day so far by 1.33% at $285.78 a share.