Are These Top Cyclical Stocks On Your Watchlist Today?
Cyclical stocks appear to be the name of the game in the stock market today. For the most part, this would be thanks to better-than-expected readings from the consumer price index (CPI) earlier today. Simply put, the CPI rose by 5.3% year-over-year in August and 0.3% from the prior month. This is compared to consensus estimates of 5.4% and 0.4% respectively. Sure, while the inflation level still remains at a roughly 13 year-high, the red-hot economy seems to be cooling off for the better.
Now, how does all this relate to cyclical stocks might you ask? Well, for the uninitiated, with less overall inflation in the consumer sector, consumers would likely spend more. This, in turn, would serve to aid the recovering economy amidst the current pandemic. In theory, companies that benefit from upticks in the economy could be go-to’s amid the current market conditions. These include names like McDonald’s (NYSE: MCD), Bank of America (NYSE: BAC), and Bath & Body Works (NYSE: BBWI) among others. Overall, I can understand if all this has you interested in the top cyclical stocks in the stock market now. In that case, here are five worth knowing today.
Best Cyclical Stocks To Watch This Week
- Albemarle Corporation (NYSE: ALB)
- Chevron Corporation (NYSE: CVX)
- General Motors Company (NYSE: GM)
- Nike Inc. (NYSE: NKE)
- DraftKings Inc. (NASDAQ: DKNG)
Albemarle Corporation is a cyclical company that focuses on chemical manufacturing. It has leading positions in lithium, bromine, and refining catalysts. The company also powers many of the world’s largest and most critical industries. Notably, they include the energy and communications segments. The company provides customers with customized solutions that combine the finest technology with a highly experienced team.
Last week, the company had its Investor Day and provided a strategic business update on its long-term goals. Albemarle says that it will continue to build on its sustainable competitive advantages.
Namely, this would include its portfolio of best-in-class assets and resources around the globe and expand on its global footprint. It also boasts industry-leading safety performance and continues to build capacity for strategic customer growth. All things considered, will you add ALB stock to your portfolio?
Next up, we have Chevron Corporation, a multinational energy corporation. In fact, the company is one of the largest oil companies in the U.S. Furthermore, it continues to provide access to energy to benefit customers all over the world. It also owns one of the largest single-resource developments in Australia. Dubbed The Gorgon Project, it is one of the world’s largest natural gas projects. With a total daily production averaging 2.1 billion cubic feet of natural gas and 15,000 barrels of condensate in 2020, the project will be an important pillar of the Australian economy for decades to come.
The company today announced that it will continue to invest more capital to grow lower carbon energy businesses. Impressively, it triples planned total capital investment to $10 billion through 2028. It also sets growth targets for renewable fuels, hydrogen, and carbon capture through 2030.
Chevron also says that it will reaffirm guidance of $25 billion excess cash generation over the next five years. Given this impressive piece of news, do you think CVX stock is worth investing in right now?
General Motors Company
General Motors (GM) is an automotive company with headquarters in Michigan. The company is focused on advancing its all-electric future that will see it invest $35 billion in electric vehicles (EV) and autonomous vehicles (AV) from 2020 through 2025. It also targets an annual global EV sales of 1 million by 2025 and will continue increasing its investment to scale faster as it builds momentum in the U.S. for its electrification plans.
Last month, the company reported strong second-quarter financials while continuing its all-electric growth initiatives. Firstly, it reported a revenue of $34.2 billion for the quarter, more than doubling from a year earlier. Secondly, net income was $2.8 billion, or diluted earnings per share of $1.90.
GM says that it successfully prioritized production of its highest demand vehicles and gained significant retail market share in the full-size pickup segment in the U.S. It also benefited from strong pricing and mix. Given this quarter’s results, the company said it was raising its full-year guidance. With that being said, will you add GM stock to your watchlist?
Another name to consider among cyclicals now would be Nike. If anything, the company would be worth watching given its status as an industry-leading footwear manufacturer. Through its global operations, Nike continues to provide for consumers’ activewear needs. Whether it is home workout enthusiasts or those looking to update their sports attire, Nike remains a go-to. With all the current attention on the cyclical sector, would NKE stock be worth watching?
NKE stock has been dealing with losses of about 7% over the past month. Now, the reason for this would be recent mentions of supply chain issues for Nike in Vietnam. Sure, at face value the issue would be alarming for some.
However, with the current scale and momentum seen in Nike’s operations, others would see a buying opportunity. To put things into perspective, the company posted stellar figures in its latest fiscal quarter. Notably, Nike posted massive year-over-year surges of 95% in total revenue and 284% in earnings per share. Would you say that all this gives NKE stock more room to run moving forward?
Last but not least, we have DraftKings, a daily fantasy sports contest and sports betting operator. It is a leading U.S.-based vertically integrated sports betting operator. The company is also a multi-channel provider of sports betting and gaming technologies in over 15 countries.
Also, its daily fantasy sports product is available in 7 countries internationally with 15 distinct sports categories. DKNG stock has enjoyed year-to-date gains of over 30%. Last week, the company announced the launch of its Sportsbook in Arizona, marking the 14th state in which the top-rated mobile sportsbook application is available.
“With the launch of our digital sportsbook coinciding with NFL kickoff, the busiest and most exciting time of the year for our company, we could not have imagined a better time to introduce Arizona’s sports fans to the DraftKings experience,” said Matt Kalish, co-founder, and president of DraftKings North America. Given all of this, will you consider DKNG stock a top cyclical stock to watch right now?