Home Entrepreneur Are cyclic stocks worth investing in? 4 to consider

Are cyclic stocks worth investing in? 4 to consider


April 22, 2021

6 minutes of reading

This story originally appeared on Stock market

Could these be the leading cyclical stocks in today’s stock market?

Cycle stocks are likely to be among the most trending inside stock market today. Why? Well, to start with, cycle stocks tend to follow the flows of the economy. Accordingly, there has been a series of positive data pointing to the recent large-scale economic recovery. Just this morning, the US Department of Labor revealed that there were 547,000 initial unemployment insurance claims last week. Notably, this marks another pandemic-era low following last week’s 576,000 claims, well below the Dow Jones’ estimate of 603,000. Regarding this news, I would not be surprised to see investors looking Top cycle stocks The current.

After all, seasoned investors like Art Hogan, National Securities chief market strategist, are now bullish on cyclical stocks. Hogan said in a recent CNBC interview that it is important to have “balance“Growth stocks and cycle stocks right now. In return, he also argued that the rebalancing between the two sides every few months would put investors “in a position to beat S&P with ease”. Apparently Southwest Airlines (NYSE: LUV) and Carnival Corporation (NYSE: CCL) continue to go beyond S&P 500 tripled from the beginning of the year until now As the pandemic continues to improve, I can see this trend continue. After reading so far, you may be interested in investing in some of the top cycle stocks above. stock market now. If so, here are the four focal points now.

Cyclic stocks to buy [Or Sell] Right now

American Airlines Group Inc.

American Airlines (AAL) is one of the largest airlines in the world. Before the pandemic, the airline provided nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. The company also has a freight division that offers a wide range of freight and mail services with facilities and interconnection available globally. AAL shares are currently trading at $ 20.45 at 1:59 p.m. ET and are up more than 35 percent so far. The company reported its first quarter financial results today and continues to see a recovery in air travel demand.

Source: TD Ameritrade TOS

Specifically, the revenue in the quarter was $ 4 billion. Although the airline industry was hit hard last year, the company may be on track to make a comeback. It has managed to raise $ 10 billion through debt financing and this could help the company get past what hopes could be the final stage of the pandemic. AAL also ended the quarter with roughly $ 17.3 billion of total liquidity available.

So said Doug Parker, President and CEO of AAL: “Looking ahead, with growth from the first quarter, we see demand continuing to recover. We still believe that the network improvements, customer-centric innovations, and the effective measures we have taken will ensure America is in a good position to recover.With all of this in mind, should you consider buying AAL stock before the economy fully reopens?

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AT&T Inc.

AT&T is a multinational corporation corporation headquartered in Texas. It is a global provider of telecommunications, communications and technology services. Through the company’s communications segment, it provides wireless and wired telecommunications to consumers. AT & T’s WarnerMedia segment develops, produces, and distributes feature films, TV shows, and games, among other areas. T shares are currently trading at $ 31.21 per share at 2:00 p.m. ET. The company today reported its first quarter results.

shares cycle (shares T)
Source: TD Ameritrade TOS

Of which, the company reported consolidated revenue of $ 43.9 billion. AT&T also posted diluted earnings per share of $ 1.04, up 65% from a year ago. Money from its operations grew 12% to $ 9.9 billion. Additionally, the company ended the quarter with $ 5.9 billion in cash. It continues to excel in developing customer relationships in the market-focused areas of mobility, fiber optics and HBO Max.

For example, the number of HBO Max subscribers grew to almost 64 million globally during the quarter. AT&T also continues to increase its penetration into broadband-related markets. With an impressive financial position, would you consider adding T stock to your portfolio?

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Pool Joint Stock Company

Pool is the world’s largest wholesale distributor of swimming pools and related outdoor living products. It operates more than 395 sales centers across North America, Europe and Australia. Impressively, it has distributed more than 200,000 national and private label products to approximately 120,000 wholesale customers. POOL shares are currently trading at $ 412.15 at 2:01 p.m. ET and have risen more than 25 percent since March. Today, the company reported record financials for its first quarter. 2021. Pool also increases guidance on 2021 earnings due to this.

best cycle stocks (POOL stocks)
Source: TD Ameritrade TOS

Digging into its finances, the company reported record net sales of more than $ 1 billion for the quarter, up 56% from the same period last year. Its diluted earnings per share rose 223% to a record $ 2.42. This record quarter appears to have come from rising demand for residential swimming pool products, fueled by a trend of focusing on families affected by the pandemic.

Looking ahead, the company hopes to achieve strong growth thanks to more difficult conditions in the second half of the year. It is also well-positioned to execute its strategic initiatives in context. All things considered, would you buy POOL stocks?

[Read More] 4 attractive retail stocks to watch in April

Norwegian Cruise Line Holdings

Last but not least, we have Norwegian Cruise Line Holdings (NCLH). In short, the company is one of the largest travel route operators globally, in terms of passenger volume. According to NCLH estimates, the company boasts a combined fleet of 28 ships, providing trips to more than 490 destinations worldwide.

Top cycle stocks to invest in (NCLH shares)
Source: TD Ameritrade TOS

If that wasn’t enough, NCLH is also one of the key players in active discussions with the CDC to restart yacht operations. Given the company’s portfolio and industry influence, investors may be keeping a close eye on NCLH’s stock. Likewise, the company’s shares are currently gaining more than 170% in the past year. Would it be worth the investment right now?

Well, Goldman Sachs (NYSE: GS) analyst Stephen Grambling seems to believe so. Earlier this week, Grambling hit NCLH stock with a buy rating, lifting his price target from $ 27 to $ 37 a share. Specifically, he argues that NCLH has “Industry-leading capacity growth“. Keep in mind, this is after considering its bigger rivals like Carnival and Royal Caribbean Cruises (NYSE: RCL). The things that Goldman Sachs rated as Neutral so far. Time will tell if this is true. In the meantime, would you consider buying NCLH stock right now?

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