4 Top Cyclical Stocks To Keep An Eye On In The Stock Market Today
Cyclical stocks could arguably be in a good spot in the stock market today. For the most part, this would be in line with the current pace of the economic recovery. As we approach the two-year mark since the initial onslaught of the coronavirus, the return to normalcy continues. In particular, the economy appears to be picking up momentum at a faster-than-anticipated pace. After all, with soaring inflation and the Fed looking to hike rates, this is all too apparent. However, even in the face of all this, cyclical markets continue to thrive.
For instance, we could take a look at the latest figures on consumer spending from the U.S. Commerce Department. Throughout January, retail sales rose by a solid 3.8% year-over-year. This is well above estimates of a 2% rise from economists. In theory, the current data would suggest that consumer spending trends remain strong even after the holiday season. So much so that consumer-facing cyclical stocks such as Apple (NASDAQ: AAPL) are thriving despite supply chain pressures. Additionally, companies in the reopening trade such as Hilton (NYSE: HLT) are seeing business rebound as well. Evidently, the company posted an earnings per share of $0.72 on revenue of $1.84 billion, topping analysts’ estimates across the board. With all this excitement in cyclical sectors, could one of these firms be top picks in the stock market now?
Cyclical Stocks To Buy [Or Sell] This Week
- Generac Holdings Inc. (NYSE: GNRC)
- Crocs Inc. (NASDAQ: CROX)
- Trade Desk Inc. (NASDAQ: TTD)
- Macy’s Inc. (NYSE: M)
Generac Holdings Inc.
First up, we have Generac Holdings, a leading global designer and manufacturer of energy technology solutions. In fact, the company provides power generation equipment, energy storage systems, grid service solutions, and other power products. It also serves the residential, light commercial, and industrial markets. As one of the only significant market participants with a primary focus on these products, the company continues to maintain a leading market position in the power equipment market. GNRC stock is up by over 8% on today’s opening bell.
Investors are likely responding positively to the company’s fourth-quarter and full-year 2021 financials that it reported today. Diving in, net sales increased to a record $1.07 billion for the quarter, a 40% jump year-over-year. Both residential and commercial & industrial product sales grew by over 40% as well. Net income for the quarter was $143 million or $2.04 per share. The company also says that it achieved record quarterly shipments and production levels as it exited 2021. Given this piece of news, is GNRC stock worth buying right now?
Crocs is a cyclical company that manufactures and markets its brand of foam clogs. It is a world leader in innovative casual footwear for men, women, and children. It offers a broad portfolio of all-season products while remaining true to its core molded footwear heritage. The company’s products also feature the Croslite material, a proprietary, revolutionary technology that gives the products its soft, comfortable, lightweight, non-marking, and odor-resistant qualities. CROX stock has been up by over 23% in the past year alone.
The company also reported its fourth-quarter and full-year revenues today. Firstly, revenues were $586.6 million, an increase of 42.6% year-over-year. Income from operations increased by 147.5% to $160 million, while it also reported a diluted earnings per share of $2.57 for the quarter. Andrew Rees, Chief Executive Officer had this to say, “Our fourth straight year of revenue growth was fueled by continued strong consumer demand for the Crocs brand globally. We are excited about our sustainable growth trajectory for both the Crocs and HEYDUDE brands and are confident in our plan to grow to $6 billion in revenues by 2026.” For these reasons, is CROX stock a top cyclical stock to invest in?
Trade Desk Inc.
The Trade Desk is a global tech company that markets a software platform used by digital ad buyers to purchase data-driven digital advertising campaigns. It does this across various ad formats and devices. Despite reporting better-than-expected earnings today, the company’s stock price is down by over 10%. Could this present investors with an opportunity to buy on the dip?
Diving into its financials, continued share gains on its platform were $6.2 billion for 2021, a 47% increase year-over-year. It also reported a revenue of $395.6 million for the quarter, a 24% increase year-over-year. It also reported a diluted earnings per share of $0.02. During the last year, the company also announced a series of partnerships with Walmart (NYSE: WMT) and Samsung (OTCMKT: SSNLF). With Walmart, the two companies launched a new demand-side platform based on the Trade Desk’s platform. It will provide advertisers with access to unique Walmart shopper data and sales measurement data in a self-service platform. With these developments, is TTD stock a buy?
Another name to consider among cyclical firms now would be Macy’s. In brief, it identifies as one of the premier omni-channel fashion retailers in the U.S. Through its national network of stores, the company primarily operates via its three core divisions. They are Macy’s, Bloomingdale’s, and Bluemercury retail brands. By and large, the company offers a wide array of merchandise catering to varying consumer demographics. On top of its fashion offerings, it also sells cosmetics and home furnishings among other consumer goods. More importantly, investors appear to be homing in on M stock in the stock market today.
Accordingly, the current jump in the company’s shares is thanks to positive analyst coverage. Namely, Evercore (NYSE: EVR) analyst Omar Saad hit M stock with an Outperform rating, significantly upgrading it from In-Line. According to Saad, the firm sees an opportunity for Macy’s to “more aggressively leverage its core assets to create significant incremental equity value.” As a result, M stock is currently looking at gains of over 4% as of today’s opening bell. This would add up to gains of over 70% in the past year. With Macy’s current momentum in mind, would M stock be a top buy for you?