The best cyclical stocks to buy right now? 5 For your list


Should investors add these top cyclical stocks to their March 2022 watch list?

While the latest talk of banning Russian oil imports into the U.S. might grab headlines, investors shouldn’t overlook cyclical stocks. Namely, the cyclical areas of the stock market today are worth noting as the economy continues to soar. Clearly, even ahead of Thursday’s Consumer Price Index (CPI) numbers, economists are already anticipating hot readings. To put things into perspective, current estimates point to a 7.9% year-over-year increase. This would mark the fastest growth in the CPI since the 1980s. With cyclical companies often growing alongside the economy, investors may now be looking to cyclical stocks in the stock market.

For example, we could look at companies such as Apple (NASDAQ: AAPL) and Carnival (NYSE: CCL). Overall, both companies deal with the consumer discretionary side of cyclical trading. For one thing, Apple would be front and center today with its upcoming launch event, its first in 2022. At the event, many expect the consumer tech giant to announce the latest gen of its budget iPhone SE. On the other hand, travel giants such as Carnival continue to bolster their offerings as pandemic conditions improve. Since yesterday, the company has been preparing for a full season of explorations in Alaska and crossings between Canada and New England. With all that in mind, could any of these cyclical stocks be worth jumping now?

Cyclical stocks to buy [Or Sell] This week

Dick Sporting Goods

Let’s start today’s list with Dick Sporting Goods, a cyclical business that focuses on sports retail. The company is a leading omnichannel retailer serving athletes and outdoor enthusiasts in over 850 stores. This includes Dick’s Sporting Goods, Golf Galaxy and Public Lands. Dick’s also owns and operates House of Sports as well as GameChanger, a youth sports mobile app for communications, live score tracking and video streaming. Today the company released its fourth quarter and full year 2021 financial statements.

Taking a dip, the company reported full-year net sales of $12.29 billion and diluted earnings per share of $13.87. The company also ended 2021 in a strong liquidity position with cash and cash equivalents of approximately $2.6 billion. “Our exceptionally strong 2021 reflects another positive step in our multi-year transformation journey,” said Ed Stack, Executive Chairman. “Our strategies are generating sustainable growth in sales and profitability, and we have set our business on a new trajectory. I would like to thank all of our teammates for their hard work and unwavering dedication to our company. All things considered, are DKS shares worth investing in?

Source: TD Ameritrade Terms of Service

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Sunrun Inc.

sunrun is one of the nation’s leading solar energy, energy service and battery storage companies. Essentially, he pioneered home solar service plans to make local clean energy more accessible to everyone. The company’s innovative home battery solutions also bring more affordable and reliable solar power. Last month, the company also released its fourth quarter and full year 2021 financial statements.

First, the company recorded a 31% growth in installed solar power capacity in 2021, beating forecasts and also reflecting the highest growth rate in five years. That’s almost three times the operating scale. Second, Sunrun reports backlog growth was 57% for the full year of 2021 driven by strong customer order trends. Annual recurring revenue was $851 million with an average remaining life of 17.4 years. It also reported net assets of $4.6 billion, including $850 million in total cash. That being said, is RUN stock a buy right now?

RUN stock
Source: TD Ameritrade Terms of Service

United Rentals Inc.

Following this, we have United Rentals, the world’s largest equipment rental company. The company has an integrated network of over 1,200 rental locations across North America. In fact, it operates in 49 states and all Canadian provinces in North America. Its more than 20,000 employees serve customers in construction and industry as well as utilities, municipalities and property owners. At the end of January, the company announced a record fourth quarter and gave a strong outlook for 2022.

Total revenue for the quarter was $2.776 billion, which includes rental revenue of $2.312 billion. Fleet productivity increased 10.3% year over year. Additionally, United Rentals reported net income of $481 million for the quarter or GAAP diluted earnings per share of $6.61. For its 2022 outlook, the company forecasts total revenue of $10.56 billion to $11.05 billion, compared to $9.716 billion in 2021. For these reasons, do you think URI stock is one of the top cyclical stocks to add to your portfolio?

URI stock chart
Source: TD Ameritrade Terms of Service

[Read More] Stock Market Today: Dow Jones, S&P 500 Ticks Lower on Potential US Oil Ban; Dick’s Sporting Goods (DKS) up on profit

Walt Disney Company

Next, we’ll take a look at the Walt Disney Company. For one thing, most are familiar with the entertainment giant’s huge portfolio. It’s no surprise, from Disney’s timeless fairy tale classics to its huge wonder and star wars IP. For investors looking to bet on notable names in cyclical trading today, Disney would be an attractive coin. After all, the business stands to benefit from both stay-at-home and post-pandemic consumer trends. This would be thanks to its Disney+ streaming platform and various Disney parks and leisure companies respectively.

Speaking of Disney+, the company continues to adapt its streaming arm to the changing consumer landscape. Notably, Disney plans to introduce a version of its streaming subscription that supports ads by 2023. That, of course, comes in the form of a more affordable version of Disney+ which, ideally, will cater to a wider audience. At the same time, it would also give Disney the ability to benefit from ads on the platform. As such, would DIS stock be one of the top cyclical stocks to buy for you right now?

DIS stock chart
Source: TD Ameritrade Terms of Service

[Read More] Top Stock Market News for Today March 8, 2022

Petco Health and Wellness Company Inc.

Last but not least, petco would be another name to consider in ring space today. Through its portfolio of “category-defining” health and wellness offerings, the company serves pet owners across the Americas. For a sense of scale, Petco currently operates through a network of over 1,500 outlets in the United States, Puerto Rico, and Mexico. Among which it also has more than 150 in-store veterinary hospitals. On the contrary, consumers who have picked up pets throughout the pandemic have turned and continue to turn to Petco now.

As a result, that appears to be the case judging by its fourth quarter earnings report released earlier today. In it, Petco raked in total revenue of $1.5 billion along with earnings of $0.28 per share. For reference, these numbers represent sizable year-over-year gains of 13% and 154% respectively. Additionally, Petco is also expanding its paid membership plan for pet care, Vital Care. In detail, the company is introducing more benefits for dogs, a new cat-friendly plan, and numerous veterinary and product discounts across the board. After considering all of this, are you going to invest in WOOF stocks?

WOOF Action
Source: TD Ameritrade Terms of Service

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]


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