Are These Top Cyclical Stocks In Your Portfolio Today?
Following a rough trading day, the broader stock market appears to be on the recovery. At the same time, there also appears to be an uptick in interest in the top cyclical stocks around. By and large, this could partially be due to the steady stream of notable earnings from the industry this week. Even as companies in this space face macroeconomic headwinds across the board, they continue to power forward. With this alongside a seemingly resistant consumer balance sheet, investors may not want to overlook cyclical stocks just yet.
For one thing, strong earnings appear to be a trend in a wide variety of cyclical businesses now. Take UPS (NYSE: UPS) and Tesla (NASDAQ: TSLA) for example. Both companies topped Wall Street estimates during their latest quarterly earnings calls over the past week. On one hand, UPS is making the most of the rise in demand for e-commerce deliveries by raising prices accordingly. On the other hand, Tesla continues to dominate the electric vehicle industry amidst the global transition from combustion engine automobiles. In fact, there are plenty of cyclical names making waves in the stock market today. Here are five more to know.
Cyclical Stocks To Buy [Or Sell] This Week
- Enphase Energy (NASDAQ: ENPH)
- Visa Inc. (NYSE: V)
- Brookfield Asset Management Inc. (NYSE: BAM)
- Kraft Heinz Company (NASDAQ: KHC)
- NVIDIA Corporation (NASDAQ: NVDA)
Kicking things off today is Enphase Energy. In brief, the company specializes in providing solar energy home solutions to consumers. Simply put, the company designs and manufactures home energy solutions ranging from solar generation to home energy storage. Not to mention, Enphase’s systems also come with real-time round-the-clock web-based monitoring and control interfaces. For today, ENPH stock seems to be benefitting from the company’s latest quarterly earnings report.
Getting straight to it, the company is boasting earnings of $0.79 per share alongside revenue of $441 million. To put things into perspective, this smashes Wall Street’s estimates of $0.67 and $432 million respectively. Notably, the company’s revenue is up by a solid 46% year-over-year to a record-high. Despite all this, Enphase is seeing further growth ahead with a revenue outlook of between $490 million and $520 million, above consensus forecasts of $475 million consensus estimate. With all this and plans of “tripling down on Europe,” it is easy to see why ENPH stock is rising now. Would you agree?
Another name to consider among cyclical players today would be Visa. Most would be familiar with this fintech industry lead now. This would be the case seeing as its core financial services are readily available across the globe. Namely, the company’s Visa-branded credit, debit, and prepaid cards are its prime offerings. Because of the aforementioned uptick in consumer spending, V stock is now gaining attention in the stock market.
To begin with, Visa is crushing consensus Wall Street forecasts in its latest financial release today. In it, the digital payments titan is looking at earnings of $1.79 per share, beating estimates by 14 cents. Furthermore, the company also raked in a total revenue of $7.19 billion for the quarter, topping consensus expectations of $6.83 billion. All in all, the company cites a rebound in consumer spending and improving pandemic conditions for the current uptick in travel-related transactions. Would all this make V stock a top pick in your books right now?
Brookfield Asset Management Inc.
Following that, we have Brookfield, a leading global alternative asset manager. Impressively, it has over $650 billion of assets under management. This spans across real estate, infrastructure, renewable power, and private equity among others. The company continues to generate attractive long-term risk-adjusted returns for the benefit of its clients and shareholders. Furthermore, it also earns asset management income for managing a range of public and private investments.
Today, Brookfield was upgraded by analysts at Credit Suisse Group to an Outperform rating. Analyst Andrew Kuske also boosted its price target to $71.50 from $68.00. BAM stock currently trades near the $50 mark. “With BAM’s continued re-packaging of the property portfolio, with potential alternative asset manager spin, and continued favorable funds flow into the Canadian market, we believe a number of conditions exist for BAM’s outperformance,” Kuske wrote in a note to clients. He also notes that rising rates and uneven economic impacts bode well for the company’s global business. All things considered, is BAM stock worth investing in right now?
Kraft Heinz Company
Kraft Heinz is a company that continues to serve millions of customers around the world. The company was given the Industry Mover Status for Sustainability Award by S&P Global as it continues to showcase some of the best ESG metrics. The company’s board of directors declared a regular quarterly dividend of $0.40 per share that will be payable on June 24, 2022, to stakeholders of record as of May 27, 2022.
Today, it also reported its first-quarter financials for 2022. Diving in, net sales for the quarter were a cool $6 billion. Organic net sales increased 6.8% year-over-year. The company also posted non-GAAP earnings per share of $0.60, beating estimates by $0.07. Furthermore, it also raised its expectations for 2022 organic net sales to a mid-single-digit percentage, This could reflect strong performance to date and ongoing business momentum. With that being said, should investors be on the lookout for KHC stock?
Last on our list today, we have Nvidia, a multinational tech company that sells its graphics processing unit (GPU) and tech services. In fact, it is a pioneer of GPUs and has essentially driven the growth of high-performance computing and artificial intelligence (AI). The company’s pioneering work in accelerated computing has also reshaped trillion-dollar industries like transportation and health care.
On April 26, 2022, the company launched its April Nvidia Studio Driver to optimize some of the most popular 3D applications like Unreal Engine 5 and Cinema4D. The driver also supports new NVIDIA Omniverse Connectors from Blender and Redshift. Last month, the company also announced a strategic collaboration with Kroger (NYSE: KR) to reimagine the shopping experience. It will do this by using AI-enabled applications and services. Kroger is one of the largest grocers in the U.S. Following all of this, is NVDA stock a buy?