3 Top Cyclical Stocks Worth Watching Right Now
As investors anxiously await this week’s latest economic data, cyclical stocks could be in focus in the stock market today. After all, as consumer spending and inflation appear to be on the rise, the economic recovery appears to be back in full swing. Subsequently, as the economy picks up the pace, so too would cyclical stocks, in general. Hence explaining why investors could be watching the top cyclical stocks in the stock market now.
For one thing, the cyclical sector does not seem to be slowing down in the least bit. On one hand, General Electric (NYSE: GE) is making headlines in the stock market today thanks to its latest announcement. Namely, GE is now planning to split into three separate units. These include its health care, energy, and aviation arms respectively. According to GE, the aviation division will retain the General Electric name after all is settled. CEO Lawrence Culp explained, “By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees.”
On the other hand, Nike (NYSE: NKE), appears to be gunning towards new horizons. According to data from the U.S. Patent and Trademark office, Nike is now filing several new trademarks this week. This includes the phrases, “Nike”, “Just Do It” alongside its “Air Jordan” and “Jumpman” brands. All of which are patents involving the sale of virtual goods relating to these brands. In theory, some would argue that Nike is looking towards the metaverse and NFTs among other means of digital monetization. As such, could one of these cyclical stocks be top picks in the current market?
Best Cyclical Stocks To Buy [Or Sell] In November 2021
- Carnival Corporation (NYSE: CCL)
- PayPal Holdings Inc. (NASDAQ: PYPL)
- Cinemark Holdings Inc. (NYSE: CNK)
Carnival Corporation is a leisure and travel company that has one of the biggest cruise fleets in the world. Its portfolio of global cruise line brands includes Carnival Cruise Line and AIDA Cruises. Boasting over 80 ships visiting over 700 ports around the world, its reach in the industry is unmatched. All in all, its nine cruise line brands offer a broad range of vacation options for millions of guests with a wide variety of leisure-time activities. CCL stock currently trades at $23.80 as of 1:33 p.m. ET.
Its line of AIDA Cruises has been firing on all cylinders recently. Notably, AIDAbella has just re-started as the ninth AIDA ship. Its first voyage leads from Palma de Mallorca in 21 days to Dubai. This is just in time as the Arabian Gulf is one of the most popular destinations in winter with pleasant summer temperatures and bountiful sunshine. The last few months have certainly been busy for the company as it carries out its reopening plays as more parts of the world have fully vaccinated their populations.
The company’s stock price was also up last week on news of Pfizer’s (NYSE: PFE) experimental antiviral pill reducing the risk of hospitalization or death by 89% in adults with COVID. This could be a game-changer in combating the pandemic. Could the worst be over for Carnival in light of this news? All things considered, should you invest in CCL stock right now?
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PayPal Holdings Inc.
Next on this list of cyclical stocks, we have PayPal Holdings. The company operates an online payments system that is used by over 400 million consumers and merchants in more than 200 markets. It also says that it is on a mission to democratize financial services to ensure that everyone has access to affordable, convenient, and secure products and services to take control of their financial lives. PYPL stock currently trades at $202.19 as of 1:33 p.m. ET.
On Monday, the company announced its third-quarter financials. Diving right in, total payment volume (TPV) reached $310 billion, growing by 26% year-over-year, while net revenue was $6.18 billion, increasing by 13% compared to a year earlier. It also added 13.3 million net new active accounts and ended the quarter with 416 million active accounts. On top of that, PayPal also reported a GAAP earnings per share of $0.92 for the quarter. The company said that the strength of PayPal’s two-sided platform and ubiquity in its core markets has set it to grow at scale, expanding its work with existing merchants and attracting new partners.
Its peer-to-peer payment app, Venmo, also announced a new partnership with Amazon (NASDAQ: AMZN). In detail, the company will be teaming up with Amazon to enable customers in the U.S. to pay with Venmo at Checkout when they make purchases on Amazon.com and the Amazon mobile shopping app using their Venmo accounts. In October, the company also closed the acquisition of Paidy, a leading two-sided payments platform and provider of buy now, pay later solutions in Japan for approximately $2.7 billion. With that being said, is PYPL stock worth buying today?
[Read More] 5 Metaverse Stocks To Watch In November 2021
Cinemark Holdings Inc.
Another name to consider among cyclical players today would be Cinemark Holdings. In brief, Cinemark is among the largest and most influential movie theater chain operators globally. The company currently has operations across 42 U.S. states and 15 countries throughout South and Central America. Thanks to the return of cinema screenings, Cinemark, alongside its industry peers, continues to ride the reopening trade momentum. With CNK stock currently trading at $21.63 a share as of 1:33 p.m. ET, could it be worth buying now?
If anything, analysts over at Credit Suisse (NYSE: CS) appear to think so. Notably, the firm hit CNK stock with an Outperform rating while raising its price target to $25 from $16. According to analyst Meghan Durkin, Credit Suisse sees Cinemark as “the best-positioned U.S. pure-play theater operator as the box office recovery ramps up into 2022.” Understandably, such an update would continue to drive growth for CNK stock in the stock market. Even now, the company’s shares are already looking at gains of over 150% since its pandemic era low.
All of this comes after the company reported continued strength in its recovery amidst the economic reopening. CEO Mark Zoradi cites “sustained positive trends in escalating consumer demand for theatrical moviegoing” at Cinemark’s current growth drivers. Not to mention, the company also posted its best monthly box office results throughout the pandemic in October. All in all, will you be adding CNK stock to your portfolio?