Do You Have These Top Cyclical Stocks On Your Watchlist This Upcoming Week?
As we approach the end of the trading week, investors could be keeping a close eye on the U.S. economy. Because of this, cyclical stocks could be in focus in the stock market today. Given the noticeable dip in the 10-year treasury yield yesterday, investor concerns over the current growth trends are not unwarranted. However, the benchmark figure bounced above the 1.34% line earlier today. Some would argue that this means that cyclical-based plays could still be viable in the current market. Evidently, even Morgan Stanley’s (NYSE: MS) Chief Investment Officer, Lisa Shalett seems to believe this. She believes that fiscal stimulus, improving demographics, and a resumption of credit growth will be key factors to consider.
Now as stocks seek to recover from yesterday’s losses, investors could see plenty of names trading at more affordable valuations. On one hand, companies that stand to benefit from fiscal stimulus tailwinds would be worth watching now. In this case, you have names such as Tesla (NASDAQ: TSLA) and Levi’s (NYSE: LEVI) to consider. At the same time, infrastructure stocks like Nucor (NYSE: NUE) and Caterpillar (NYSE: CAT) are also viable plays now. Given President Joe Biden’s recent infrastructure bill, this could be the case. All in all, the cyclical industry seems to be an interesting long-term growth play for investors now. Should you agree with this, here are five cyclical stocks to keep an eye on in the stock market now.
Best Cyclical Stocks To Buy [Or Sell] In July 2021
- General Electric Company (NYSE: GE)
- Boeing Company (NYSE: BA)
- Stamps.com Inc. (NASDAQ: STMP)
- Walt Disney Company (NYSE: DIS)
- Nio Inc. (NYSE: NIO)
General Electric Company
GE is a multinational cyclical company that is headquartered in Boston. With over 120 years of experience, the company has invented the future of the industry and continues to innovate in the health care, power, renewable energy, additive manufacturing, and aviation industry among others. GE stock currently trades at $13.16 as of Friday’s closing bell and has been up by over 90% in the last year.
On Thursday, the company announced that it has been selected by European Energy as the supplier for three additional wind farms in Lithuania. The 187 megawatts project, which will use 34 GE Cypress onshore wind turbine units, will strengthen the partnership between both companies. European Energy will operate 56 Cypress units in the country. As Lithuania is aiming to have 100% of its electricity come from renewable sources by 2050, GE could be primed for growth in the region. All things considered, will you consider buying GE stock in the stock market today?
Boeing is a leader in the aviation, aerospace, and defense technology industries, supporting airlines and U.S. and allied government customers in more than 150 countries. Its technology and products include communication systems, satellites, defense systems, and commercial aircraft. BA stock currently trades at $239.59 as of Friday’s closing bell. This past Thursday, Chinese aviation officials expressed willingness to conduct flight tests on Boeing’s 737 MAX, potentially paving for the fastest-selling jet’s return in China.
Deals of a validation flight are still being worked out and the company plans to send a team of pilots and engineers to meet the officials in late July. In late June, the company also announced that United Airlines (NYSE: UAL) ordered an additional 200 737 MAX jets. This includes 150 for the largest member of the family, the 727-10, and 50 for the airplane that serves the heart of the single-aisle market, the 737-8. Given the excitement surrounding Boeing, is BA stock worth adding to your portfolio?
Stamps is a cyclical company that provides internet-based mailing and shipping services. It also provides e-commerce shipping software solutions to customers including consumers, small businesses, and high-volume shippers. In essence, its solutions help businesses run their shipping operations more smoothly. STMP stock saw impressive gains during Friday’s trading sesion closing up over 63% at $324.23 a share.
The company’s stock popped on news that it has entered into a definitive agreement to be acquired by Thoma Bravo, a leading software investment firm in an all-cash transaction that values Stamps at approximately $6.6 billion. “As the first company to introduce online postage and an early innovator in e-commerce shipping software, Stamps.com has established itself as a key technology solution in worldwide e-commerce,” said Holden Spaht, a Managing Partner at Thoma Bravo. With that in mind, will you watch STMP stock right now?
Walt Disney Company
Another top name to consider in the cyclical industry today would be the Walt Disney Company. For the most part, the company’s wide yet relevant portfolio continues to cater to the needs of consumers across the board. Firstly, Disney’s tourism portfolio would be in a good position to leverage potential upticks in travel trends. This would be the case once the pandemic is fully dealt with. Secondly, the company is also a prominent player in the increasingly popular video streaming industry now. With DIS stock currently trading at $177.04 a share to close out Friday’s trading session, could it be a good buy this week?
While this remains to be seen, Disney is hard at work bolstering its portfolio in general. Yesterday, senior creative director Danny Handke revealed that the company’s Disney Wish cruise is bringing new dining experiences to travelers. Specifically, Handke explained that the 2500-passenger ship is looking to introduce a “cinematic dining adventure” called Avengers: Quantum Encounter. Additionally, Disney Wish will also see two fast-casual restaurants added to its list of facilities. Meanwhile, Disney has also dropped a trailer for its latest animated film Encanto, earlier today. Given all of this, would you consider DIS stock worth investing in now?
Topping off our list today is Nio Inc., a leading name in the booming Chinese electric vehicle (EV) market now. Naturally, Nio primarily designs and develops premium smart EVs. Last month, the company reportedly delivered 8,083 vehicles, a 116% year-over-year increase. With Nio seemingly powering through the chip shortage in the automotive market, I could see investors eyeing its shares now. After gaining by over 350% in the past year, NIO stock is now trading at $45.53 a share as of Friday’s close.
Regardless of its current momentum, Nio does not seem to be slowing down anytime soon. Just this week, the company provided two updates regarding its emerging EV charging portfolio. As of earlier today, Nio is planning to position 4,000 EV battery swapping stations globally by 2025. Nio could have as many as 700 stations installed by the end of this year. This comes two days after the company was awarded the TÜV Rheinland European Conformity Certificate and TÜV MARK Approval Certificate. Notably, these awards allow Nio to operate in all European Union member states. All of this would serve to bolster the company’s presence globally. With Nio seemingly kicking into high gear now, will you be keeping an eye on NIO stock?