4 Top Cyclical Stocks To Watch In The Stock Market Today
As the economy continues to recover, cyclical stocks could be worth noting in the stock market today. For one, we could take a look at the solid March jobs report released last week, where payrolls rose, and unemployment fell. Besides that, investors should also keep in mind February’s Personal Consumption Expenditures (PCE) Index readings. Known as the Fed’s preferred inflation gauge, the figures released last week came in at 6.4% on an annualized basis, the fastest increase since 1982. With these factors pointing towards a piping hot economy, cyclical stocks could be on the minds of investors.
Investors could consider the likes of General Motors (NYSE: GM). Its commercial EV brand, BrightDrop, has just started testing its EP1 delivery pallets in the U.S. and Canada. The electrically assisted delivery pallets will help address a lack of parking spaces for delivery trucks and vans in major cities. FedEx (NYSE: FDX) being the company’s first client, has found couriers equipped with EP1 pallets deliver 15% more packages a day compared to traditional pallets. With that being said, check out these cyclical stocks in the stock market today.
Cyclical Stocks To Buy [Or Sell] Right Now
- Hertz Global Holdings Inc. (NASDAQ: HTZ)
- Logitech International SA (NASDAQ: LOGI)
- Shopify Inc. (NYSE: SHOP)
- Brinker International Inc. (NYSE: EAT)
Starting us off today is Hertz, a car rental company. Hertz is one of the largest worldwide vehicle rental companies with operations in about 160 companies. As such, the Hertz brand is one of the most recognized car rental companies globally. For a sense of scale, Hertz operates approximately 12,000 corporate and franchise locations, both domestically and internationally. Additionally, the company also owns Firefly Car Rental, Thrifty Car Rental, and Dollar Rent A Car brands. In the past month, HTZ stock has risen by over 20%. Yesterday, the company announced a strategic partnership with Polestar, a Swedish premium EV car maker.
Notably, Hertz will be buying up to 65,000 EVs from Polestar over the next 5 years. The availability of Polestar EVs at Hertz is expected to start in Spring 2022 in Europe and late 2022 in North America and Australia. Hertz CEO Stephen Scherr said, “By working with EV industry leaders like Polestar, we can help accelerate the adoption of electrification while providing renters, corporate customers and rideshare partners a premium EV product, exceptional experience and lower carbon footprint.” This partnership builds on Hertz’s announcement last October. Namely, Hertz aims to offer customers the largest EV rental fleet in North America and one of the largest in the world. With that being said, will you be adding HTZ stock to your watchlist?
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Logitech is a Swiss-based company thatmakes computer peripherals such as mice, keyboards, webcams, and gamepads. In fact, it is one of the world’s leading manufacturers of input and interface devices for personal computers (PCs) and other digital products. The company sells its products through a network of distributors and retailers. Furthermore, the company is home to popular brand names such as ASTRO Gaming, Streamlabs, Ultimate Ears, and Jaybird. The company yesterday scored an upgrade to Buy from Goldman Sachs (NYSE: GS).
Analysts from the investment bank believe that Logitech will see attractive long-term growth as videoconferencing becomes even more common. Analyst Alexander Duval forecasts that companies will continue setting up offices and homes for videoconferencing for the years to come. As such, the computer peripheral company should expect to see higher sales volumes, given the relatively untapped video conferencing market today. In addition to this, Duval believes that long-term trends in video gaming will benefit Logitech as well. Thanks to the rise of esports and cloud gaming, consumers will likely be splashing out on hardware. Given this upgrade, should you invest in LOGI stock?
Another top cyclical stock to keep an eye out for is Shopify. In essence, itis a multinational e-commerce company with headquarters in Ontario, Canada. The company’s global commerce operations continue to present growth prospects. This comes as it has a growing set of tools and capabilities that enable merchants of all sizes to sell to anyone, anywhere. It also boasts a data advantage, with tens of billions of interactions accumulated over the years that are now leveraged through machine learning. Two weeks ago, the company introduced a new tool called Linkpop.
For the most part, it is an online landing page that allows creators to sell products directly from their Linkpop page. It works by allowing creators to include important links on the page. This makes the buying process more efficient as consumers can purchase directly on Linkpop without leaving the app they were using. In addition, Linkpop also includes built-in analytics tools that merchants can use to better understand how customers are engaging with their page. Along with that, they’ll be able to view metrics such as link clicks and unique visitors. With this new tool available, would you consider buying SHOP stock?
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Closing off our list today is Brinker International, one of the leading casual dining restaurant companies in the U.S. Its portfolio of restaurants includes the American classic Chili’s Grill & Bar, as well as Maggiano’s Little Italy. Besides that, it has two virtual brands, It’s Just Wings and Maggiano’s Italian Classics. Additionally, Brinker operates or franchises over 1,600 restaurants in 29 countries and two U.S territories. In February, the company reported its second-quarter fiscal 2022 earnings.
Diving in, Brinker’s sales increased to $904.5 million from $746.2 million a year ago. This 21% increase is thanks to strong sales growth in its Chili’s and Maggiano’s restaurants. Chili’s brought in increased sales to $791.9 million, up by 12.1% year-over-year. Brinker says sales increased primarily due to higher dining room sales. On the other hand, Maggiano’s segment sales increased due to higher dining and banquet room sales. To be precise, sales were $112.6 million, up by 78.1% from the year before. Meanwhile, net income per diluted share increased to $0.60 from $0.26 last year. Given the strong sales from Brinker’s restaurants, will you be checking out EAT stock?
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