Are These Top Cyclical Stocks Worth Watching This Week?

Despite the recent mix of news regarding the economic recovery, the broader stock market continues to reach newer heights. Thanks to the latest release from the U.S. Labor Department, cyclical stocks could be taking center stage today. Diving right into it, the U.S. economy reportedly added 943,000 jobs throughout July. Notably, this smashes consensus estimates of 845,000 from economists across the board. At the same time, the unemployment rate is now down to 5.4%, under the projected 5.7%. Ideally, most would see this as a positive update for the reopening trade now.

Sure, you could argue that the coronavirus and its variants would pose a threat to the industry’s current momentum. However, businesses and organizations are more prepared than they were last year when the pandemic first hit. Take United Airlines (NASDAQ: UAL) for example. The company is now requiring all of its 67,000 U.S. employees to be vaccinated by early October. In theory, this would help the company optimize its operations amidst the current pandemic. Meanwhile, infrastructure companies on the other end of the cyclical trade would also be relevant now. The likes of Nucor (NYSE: NUE) are gaining attention as President Biden’s latest infrastructure bill progresses forward. With all this in mind, here are five top cyclical stocks to consider in the stock market today.

Best Cyclical Stocks To Watch In August 2021

Walmart Inc.

Walmart is a multinational retail corporation that operates a chain of hypermarkets, department stores, and grocery stores. Also, the company claims that each week, approximately 220 million customers and members visit its approximately 10,500 stores and clubs under 48 banners across 24 countries and its e-commerce websites. It also boasts over 2.2 million associates worldwide.

In June, the company announced the Walmart MoneyCard issued by Green Dot Bank (NYSE: GDOT) is now offered as a demand deposit account. Basically, this would help Walmart customers save money and live better. “We are excited to work with Green Dot to provide a more convenient and innovative way for customers to manage their finances with the new Walmart MoneyCard, which offers cashback, overdraft protection, direct deposit, interest on savings, and more,” said Julia Unger, vice president of Financial Services at Walmart. “We are committed to offering our customers valuable services to help them manage their financial needs.” Given all of this, will you be buying WMT stock?

top cyclical stocks (WMT stock)
Source: TD Ameritrade TOS

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Wells Fargo & Co.

Wells Fargo is a cyclical company that provides financial services. It has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of small businesses in the U.S. It is also the leading middle banking provider in the U.S. In brief, the company provides a diversified set of banking, investment, and mortgage products and services.

In late July, the company announced a quarterly common stock dividend of $0.20 per share payable on September 1, 2021. This third-quarter dividend represents an increase of $0.10 per share from the prior quarter. On Thursday, the company announced that it received the 2021 Apex Award in honor of its online Small Business Resource Center, to help small business owners amid the pandemic. The resource center has assisted nearly 900,000 small businesses since its launch by offering them tools, resources, and financial assistance to help weather one of the largest economic downturns in history. All things considered, will you buy WFC stock?

best cyclical stocks (WFC stock)
Source: TD Ameritrade TOS

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Nvidia Corporation

Nvidia is a technology company that has essentially redefined modern computer graphics and high-performance computing with the invention of the graphics processing unit (GPU). To begin, its products are used in the gaming and professional markets. It also designs system-on-a-chip units (SoCs) for mobile computing and the automotive market. Furthermore, its professional line of GPUs is used in workstations for applications in the architecture and engineering fields among others.

On Wednesday, analysts at Rosenblatt Securities had raised their price target for the company to $250 in a research note issued to investors. The firm also gave the company a buy rating, citing Nvidia’s earnings power on its AI and next-generation networking technologies. The company also recently announced that it will host its conference call for its second-quarter financials on August 18, 2021, after the market closes. Given the excitement surrounding the company, is NVDA stock worth adding to your portfolio?

cyclical stocks to buy now (NVDA stock)
Source: TD Ameritrade TOS

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Bank of America Corporation

Following that, we will be taking a look at the Bank of America Corporation (BAC). Most would be familiar with this titan in the financial space now. This would be thanks to its global investment banking and financial services portfolio. In the U.S., BAC currently operates via 4,300 retail financial centers, 17,000 ATMs, and serves 41 million active users digitally. Furthermore, the company is also present in 34 other countries across the globe.

After more than doubling since its pandemic era low, could the company’s shares have more room to run moving forward? Well, for one thing, BAC’s shift in focus towards the digital space seems to be benefiting the company. Yesterday, BAC reported that its Bank of America app facilitates 85% of deposit transactions on its network now. In the second quarter, this accounts for nearly 48 million checks that were deposited by BAC customers. All in all, the company continues to cater to the shifting needs of its clientele during the pandemic. Would this make BAC stock a top buy for you now?

best cyclical stocks (BAC stock)
Source: TD Ameritrade TOS

Square Inc.

Last but not least, we have a leading name in the fintech industry now, Square. Similar to our previous entry, the company would stand to benefit from cyclical tailwinds in the consumer space. Accordingly, the company’s comprehensive digital payment offerings would be a factor to consider when investing in SQ stock.

If anything, SQ stock could be on investors’ radars now thanks to the company’s latest announcement. Namely, Square is planning to acquire Australian fintech company Afterpay. The company is known for its buy now, pay later (BNPL) services. Simply put, Afterpay’s BNPL offering allows consumers to break up payments into four interest-free installments. This would be a strategic play by Square now given the popularity of BNPL systems among consumers this year. All in all, some would argue that this gives SQ stock more space to grow. Would you say the same?

cyclical stocks to watch (SQ stock)
Source: TD Ameritrade TOS

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