5 Trending Cyclical Stocks To Check Out This Week
Thanks to the barrage of consumer-focused news due in the stock market this week, cyclical stocks continue to gain momentum. For starters, what are cyclical stocks, might you ask? Well, simply put, they are stocks that tend to grow alongside the economy. As such, you have both consumer discretionary players and industrial giants to consider in this group of stocks. This week, however, the focus will likely be on the retail side of things. For the most part, this would be thanks to the U.S. Commerce Department’s October retail sales report due tomorrow.
Overall, the report will serve to provide crucial insight into consumer spending trends going into the holiday season. Arguably, China’s results on this front could be contributing to positive investor sentiment on the matter now. To point out, China saw its retail sales surge by 4.9%, smashing consensus projections of 3.5% growth. At the same time, things appear to be lifting off for cyclical companies like Boeing (NYSE: BA) and Netflix (NASDAQ: NFLX) as well. On one hand, Boeing claims that it is “getting close” to resuming deliveries off its flagship aircraft. On the other hand, Netflix is reportedly making plans for season 2 of its blowout series Squid Game. Overall, there are plenty of top cyclical stocks to consider in the stock market today. Here are five to watch now.
5 Top Cyclical Stocks To Buy [Or Sell] This Week
- Dollar Tree Inc. (NASDAQ: DLTR)
- Canopy Growth Corporation (NASDAQ: CGC)
- GameStop Corporation (NYSE: GME)
- Walt Disney Company (NYSE: DIS)
- Carnival Corporation (NYSE: CCL)
Dollar Tree Inc.
Dollar Tree is a Fortune 200 company that is a leading operator of discount variety stores. It has over 15,000 stores across North America and is supported by a coast-to-coast logistics network and more than 193,000 associates. The company is also one of the fastest-growing retailers in the U.S. and offers an assortment of merchandise for the whole family. This would range from household items to health and brand-name foods. DLTR stock currently trades at $128.64 as of 12:44 p.m. ET and is up by over 13% on today’s opening bell.
This latest rally seems to come after activist investor Mantle Ridge took a stake in the company. The Wall Street Journal reports that Mantle Ridge wants Dollar Tree to take action to boost its stock price and is focusing on pricing strategies at the company’s Family Dollar chain. This news also prompted Deutsche Bank to upgrade the stock to a Buy rating, citing potential improvements. Analyst Krisztina Katai says that the added element of a new large shareholder with a clear focus on unlocking meaningful value by closing the profitability gap between Dollar General and Family Dollar should lead to a more patient investor base with a longer-term focus. Given this exciting piece of news, should you be paying close attention to DLTR stock today?
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Canopy Growth Corporation
Following that, we have Canopy Growth Corporation, a cyclical name that is also a multi-faceted cannabis company. Through its owned and partnered cannabis production platforms, the company has created a dominant, global business with the potential to generate a significant and sustained return on shareholder capital over the long term. CGC stock currently trades at $14.82 as of 12:44 p.m. ET.
On November 5, 2021, the company reported its second fiscal quarter earnings. Among its highlights include it announcing the acquisition of the No. 1 edibles company in North America, Wana Brands, upon U.S. THC permissibility to further strengthen its U.S. ecosystem. The company also launched whisl during this quarter, an innovative CBD vape designed for mood management through an exclusive partnership with Circle-K in the U.S. On top of that, the company also reported a net revenue of $131 million for the quarter. All things considered, will you add CGC stock to your portfolio?
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Next is GameStop, a cyclical company that is a consumer electronics and gaming merchandise retailer. In fact, the company is one of the largest video game retailers in the world. At the start of 2021, it also received significant media attention due to its stock price skyrocketing from a short squeeze orchestrated by retail traders. GME stock currently trades at $206.36 as of 12:45 p.m. ET and is up by over 1,000% year-to-date.
In September, the company reported its second-quarter financials. Diving in, GameStop has generated net sales of $1.18 billion, up by 25.5% year-over-year. The company also ended the quarter with $1.78 billion in cash. With that, GameStop says that it is invested in long-term growth initiatives that include expanding the company’s product catalog, enhancing its fulfillment network capabilities and technology, and also adding talent across the organization. With that being said, should you buy GME stock ahead of its next earnings?
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Walt Disney Company
Another name to consider in the cyclical trade would be Disney. In theory, the company’s vast array of entertainment offerings could make it a go-to for investors now. To begin with, Disney’s premium tourist attractions and services would be on the rise as travel restrictions continue to ease. From its Disneyland resorts to its cruise operations, Disney brings plenty to the table on this front. Alternatively, the company’s Disney+ streaming service continues to cater to less adventurous consumers staying home amidst the current pandemic.
Even with all of this, DIS stock is currently looking at year-to-date losses of about 10%. With the company’s shares trading at $158.35 as of 12:45 p.m. ET, could it be worth jumping on? For one thing, the company’s work with the Marvel cinematic universe (MCU) appears to be far from over. Firstly, its latest MCU blockbuster Eternals topped domestic box offices in its second weekend. Secondly, Disney revealed a slate of new series related to both the MCU and Star Wars franchises on its Disney Plus day last week. As Disney continues to dominate the entertainment scene, could DIS stock be a top buy for you?
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Last but not least, we will be looking at the Carnival Corporation. By and large, most investors eyeing the travel industry now would be familiar with Carnival. It is among the largest players in the global cruise line market today. Through its massive fleet of vessels, the company offers consumers sailing experiences to locations worldwide. In terms of its U.S. operations, Carnival currently has 24 ships that can sail from 14 U.S. homeports.
Notably, CCL stock remains a hot pick among investors looking to bet on the reopening trade. It currently trades at $22.32 as of 12:45 p.m. ET after gaining by over 150% since its pandemic era low. Even so, Carnival does not seem to be slowing down anytime soon. As of yesterday, the company resumed guest operations from Tampa with its Carnival Pride ship. This would be part of Carnival’s plans to fully resume its U.S. operations by March 2022. Given all of this, will you be adding CCL stock to your portfolio?