The best cyclical stocks to buy right now? 3 to watch


June 4, 2021

6 minutes to read

This story originally appeared on stock Exchange

It goes without saying that cyclical stocks would be among the most active actions today in the stock Exchange. Naturally, with the economy seeking to revive to post-pandemic levels, it would. In fact, investors received more good news about the job market earlier today. According to the Labor Department’s May employment report, the unemployment rate fell to 5.9%, a new low in the pandemic era. Now to counteract that would be the fact that nonfarm wages rose to 559,000 against estimates of 650,000. While the economy may not be recovering at breakneck speed, it is gradually on the rise. As such, investors might be eager to jump on major cyclical stocks now.

For the most part, I wouldn’t blame them for doing it. Take the hotel industry for example. Indeed, it was one of the sectors hardest hit during the attacks of the pandemic. Now, hotel industry players such as Marriott International (NASDAQ: MAR) and Hilton hotels (NYSE: HLT) have more than doubled since their pandemic-era lows. Shares of both companies have already returned impressively to pre-pandemic levels. It seems investors are more than willing to bet on pent-up consumer demand for travel now.

Also, industrial players like Caterpillar (NYSE: CAT) and John Deere (NYSE: FROM) continue to thrive as well. As the main activities of the duo are closely linked to the construction and agriculture sectors respectively, I can understand why. After all, both sectors stand to benefit in times of economic growth. Now, CAT and DE stocks have skyrocketed well beyond pre-pandemic levels to new highs. Overall, cyclicals appear to be dominating the broader market in terms of gains this year. On that note, here are three main cyclical stocks to note in the scholarship today.

Best Cyclical Stocks to Watch This Month

General Electricity Company

General Electric (GE) is a multinational conglomerate headquartered in Boston. For over 125 years, GE has been an industry leader and continues to help the world be more efficient and reliable. With its dedicated team and cutting-edge technology, the company is the 33rd largest company in the US by gross sales in the Fortune 500. GE stock is currently trading at $ 13.95 at 11:23 am ET and is up over 75% year on year on the other. Recently, the company won one of the largest onshore wind contracts in Southeast Asia.

Source: TD Ameritrade T & Cs

In detail, the company announced that it has been awarded a contract with BIM Wind JSC, a joint venture project between AC Energy of Ayala Corporation and BIM Energy Holding. BIM Group is one of the largest private conglomerates in Vietnam. The joint venture will see GE supply, install and commission GE Cypress onshore wind turbines for BIM Wind’s 88 MW wind farm in Ninh Thuan province, south-central Vietnam. The 88 MW order is the company’s largest Cypress platform contract in Southeast Asia, eclipsing three other Cypress orders in Vietnam in the past 12 months.

The company has aggressively developed its renewable energy business. On Tuesday, he announced an independent report from PwC Canada, commissioned by GE Hitachi Nuclear Energy. The report highlights the economic benefits of deploying its BWRX-300 small modular reactors in Canada and the potential export of this technology to the world. First, the construction and operation of the first BWRX-300 reactor in Ontario is expected to generate approximately $ 2.3 billion in GDP, $ 1.9 billion in labor revenues and over $ 750 million in federal tax revenues, provincial and municipal. Given the prowess of the company’s energy segment, will you consider monitoring GE stocks?

Five Below Inc.

Five Below is a chain of specialty discount stores that sell products that cost up to $ 5. In essence, the company is a high-growth, leading retailer for tweens, teens and beyond, delivering high quality products. The company has more than 1,000 stores in 39 states. FIVE stock is currently trading at $ 186.30 at 11:40 a.m. ET. The company today announced strong first quarter financial results, to the delight of investors.

best cyclical values ​​(FIVE share)
Source: TD Ameritrade T & Cs

Diving, the company reported net sales of $ 598 million, a 64% year-over-year increase. Net income for the quarter was $ 49.6 million and its earnings per share increased 91% to $ 0.88 from a year ago. Joel Anderson, President and CEO of Five Below said, “We are delighted to continue to grow and innovate as part of our key strategic initiatives of product, experience, and the supply chain. We’re on track to open 170-180 new stores this year and bring our unique Five Below experience to more new customers. With the flexibility inherent in our eight worlds, our unique merchandising approach, and our focus on innovation, we believe we remain in a strong position to continue to grow Five Below and generate sustainable, long-term value. for all stakeholders.

The company, in its outlook for the second quarter, expects net sales to be between $ 640 million and $ 660 million based on approximately 30 new store openings. Net income is expected to be between $ 56.9 million and $ 63.7 million. For these reasons, will you add FIVE stocks to your watchlist?

[Read More] The best growth stocks to buy now? 5 electric vehicle stocks to watch out for

Zumiez Inc.

Another name to watch out for in the cyclical space now would be Zumiez Inc. In short, the Washington-based company identifies itself as a multinational specialty clothing store. In addition to clothing, the company also markets footwear, accessories and durable goods. In particular, the company’s offers are aimed primarily at young men and women looking to catch up with the latest trends. This summer, the company’s target market would be the new outfit market. When you combine that with rising vaccination rates, things might get better for Zumiez now. As it stands, ZUMZ stock is looking at 30% year-to-date gains and is currently trading at $ 46.52 a share at 11:39 a.m. ET.

cyclical stocks to buy now (ZUMZ
Source: TD Ameritrade CGU

Just yesterday, the company announced a first quarter tax record, blowing investors away. For starters, Zumiez reported earnings per share of $ 1.03, beating consensus Wall Street estimates of $ 0.04 per share. On top of that, the company also doubled its net profit compared to the same quarter last year. Despite the closure of some of its physical stores, Zumiez continues to prosper.

Looking ahead, the company also seems optimistic. Zumiez cited his “solid balance sheet and differentiated strategiesAs key factors that will help it maintain positive momentum this year. In particular, the company believes it is well positioned to grow its global market share and increase shareholder value over the long term. Having read all of this, would you consider the stock ZUMZ to be a premium watch now?

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