Are These Cyclical Stocks The Best Stocks To Buy Today?
Cyclical stocks could be making a strong comeback in the stock market in the months ahead. This is evident as investors are now rushing into the sector. Cyclical stocks are usually more economically sensitive after all. The sector’s underlying business generally follows the economic cycle of expansion and recession. Retail, entertainment, industrials, and hotels are some examples that usually fall into this category of stocks. As U.S. vaccinations continue moving at an unprecedented speed, averaging over 3 million vaccine doses a day, cyclical stocks could be a strong bet as economies reopen.
As consumers and investors eagerly wait for a reopened country and economy, we can see how some cyclical stocks have already been building momentum. For instance, Boeing (NYSE: BA) has already seen gains of over 25% year-to-date. Major airlines Delta Air (NYSE: DAL) has also seen gains of over 30% year-to-date. These stocks were among the hardest hit last year when the pandemic first struck. Today, however, tells a different story. With that in mind, here is a list of top cyclical stocks to consider adding to your portfolio ahead of the country’s reopening.
Best Cyclical Stocks To Buy [Or Sell] Now
- Scienjoy Holding Corp (NASDAQ: SJ)
- Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)
- BBQ Holdings Inc. (NASDAQ: BBQ)
- Romeo Power Inc. (NYSE: RMO)
Scienjoy Holding Corp
Scienjoy is a leading live streaming video entertainment social platform in China. To summarize, with over 200 million registered users, the company operates through its three primary online streaming brands. Namely, they are Showself, Lehai, and Haixiu, each using Scienjoy’s own mobile applications. Accordingly, the company’s mobile applications will allow users to select broadcasters and enter real-time video rooms to interact with them. SJ stock has shot up by over 50% on today’s opening bell and currently trades at $13.80 as of 12:47 p.m. ET. This latest rally seems to be coming from investors responding to its latest press release.
In it, the company announced today that it has entered a strategic alliance with Snipp Interactive Inc. (OTCMKTS: SNIPF). Snipp is a global provider of digital marketing promotions, rebates and loyalty solutions. The alliance will help launch a new loyalty and rewards system for Scienjoy users.
Also, the alliance will allow both parties to explore different ways of incorporating Snipp’s platform into Scienjoy’s suite of mobile applications. Firstly, Scienjoy will combine its in-app currency solution with Snipp’s loyalty and rewards engine. Secondly, both parties will work together to enable broadcasters to mint their own non-fungible tokens (NFTs) on Scienjoy’s platform. Given the hype surrounding the company, will you consider buying SJ stock?
Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line Holdings or NCLH is a leading global cruise company that boasts a combined fleet of 28 ships. The company covers itineraries to more than 490 destinations worldwide and plans to introduce an additional nine ships through 2027. The company’s stock currently trades at $30.94 as of 12:48 p.m. ET and has been up by over 30% year-to-date. NCLH today has set the stage for its recovery as the world continues its vaccination rollout.
In its press release today, the company announced a two-pronged plan for its long-awaited return to cruising this summer. To provide a uniquely safe and healthy vacation experience, all initial voyages will operate with fully vaccinated guests and crew in addition to the Company’s robust, multi-layered SailSAFE health and safety program, which includes universal COVID-19 testing before embarkation.
Also, the company has announced the formation of the SailSAFE Global Health and Wellness Council. This is certainly one of the most comprehensive reopening plans from a company so far. The plans have been submitted to the U.S. Centers for Disease Control and Prevention (CDC) for review. NCLH will await further discussion with the CDC regarding this proposal for a July 4 restart to participate in America’s national opening. In anticipation of that, will you be watching NCLH stock?
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BBQ Holdings Inc.
BBQ is a chain of barbecue restaurants primarily located in the Midwestern United States. In brief, the company is engaged in the ownership and operation of casual and fast dining experiences primarily through its Famous Dave’s restaurants. It boasts 145 locations in 31 states and three countries. BBQ stock has been up by over 17% on today’s opening bell and currently trades at $11.10 as of 12:49 p.m. ET. Investors seem to be responding to two pieces of news that the company released on Monday.
Firstly, it reported its fourth quarter and fiscal year 2020 financial results. Throughout 2020, the company has focused on innovation, technology, and marketing to expand its off-premise service in all concepts. Furthermore, it opened seven Famous Dave’s ghost kitchens in existing Granite City locations and entered into a 25-unit development agreement to grow the Famous Dave’s brand across the U.S.
Secondly, the company also introduced its first drive-thru and Quick ‘Que model. This would help the company better serve its customers by providing a more convenient experience for customers without compromising the quality of food. With all these in mind, will you consider buying BBQ stock?
Romeo Power Inc.
Romeo Power is a cyclical company that delivers large-scale electrification solutions for complex commercial applications. Furthermore, the company’s suite of advanced hardware, combined with its innovative battery management system, delivers top-line performance and reliability. RMO Stock has been up by over 31% during Tuesday’s trading session and currently trades at $10.64 as of 12:50 p.m. ET. This latest rally seems to be coming from the company’s press release today. In detail, the company announced a long-term supply agreement with PACCAR (NASDAQ: PCAR), a global technology leader in the design and manufacture of high-quality premium trucks.
The agreement will have Romeo Power supply its battery packs, modules, and battery management systems for PACCAR’s battery electric vehicles (BEVs). Specifically, the company will be a battery supplier for PACCAR’s Peterbilt 579 and 520 BEVs in the U.S. and Canada through 2025.
Last week, the company also announced its preliminary fourth-quarter and full-year 2020 financial results and business update. Romeo Power reported that it had completed its business combination with RMB Acquisitions Corp. and related PIPE financing, providing an additional $346 million in net proceeds to fund its future growth. The company also signed a multi-year, $234 million agreement with Lion Electric to supply battery modules and packs for Lion’s fleet of electric vehicles. Considering that, do you think RMO stock is a top cyclical stock to buy?