Cyclical stocks are stocks that tend to rise and fall with the economy. These stocks are typically tied to industries that produce goods or services that are sensitive to changes in economic growth. For example, companies in the automotive, housing, and leisure industries are often referred to as cyclical. This is because their sales and profits tend to fluctuate with the economy.
When the economy is strong and growing, these companies typically see an increase in demand for their products and services. Which in turn, can lead to higher stock prices. However, when the economy is weak or in a downturn, demand for these products and services tends to decrease, which can lead to lower stock prices. Cyclical stocks can offer investors more gains during strong economic cycles since they have more potential for growth than non-cyclical investments do. Now know this, here are two cyclical stocks to watch in the stock market today.
Cyclical Stocks To Watch Right Now
- Lowe’s Companies, Inc. (NYSE: LOW)
- Marriott International (NASDAQ: MAR)
Lowe’s Companies (LOW Stock)
Kicking off the list, Lowe’s Companies (LOW) is a large chain of home improvement stores in the United States. Lowe’s offers a wide variety of products and services, including appliances, tools, and home improvement supplies. For a sense of scale, the company has more than 2,200 stores across the United States. It is also the second-largest home improvement store chain in the country, behind only The Home Depot (NYSE: HD).
LOW Recent Stock News
Last month, Lowe’s Companies (LOW) reported third-quarter 2022 financial and operating results. In detail, the company announced earnings of $3.27 per share, along with revenue of $23.5 billion. For context, analysts’ consensus earnings estimate was $3.11 per share and revenue of $23.1 billion for Q3 2022.
Marvin R. Ellison, Lowe’s chairman, president, and CEO said, “We delivered better-than-expected results this quarter, with U.S. comps up 3%, driven by Pro growth of 19% and improved DIY sales trends. Sales on Lowes.com grew 12%, on top of 25% growth last year. We also drove substantial improvement in adjusted operating margin through disciplined execution and cost management.“
LOW Stock Chart
In the last month of trading, Lowe’s Companies has recovered by 9.13%, though shares are still down 20.29% year-to-date. Meanwhile, on Friday, shares of LOW stock are trading flat on the day at $203.66 a share.
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Marriott International (MAR Stock)
Next, Marriott International (MAR) is a global hospitality company that manages a broad portfolio of hotels and related lodging facilities. Marriott operates more than 7,000 properties in over 130 countries and territories, with a diverse range of brands catering to different market segments, from luxury hotels to extended-stay suites and budget motels.
MAR Recent Stock News
In November, Marriott reported that its board of directors declared a quarterly cash dividend of $0.40 cents per share of common stock. This dividend reflects a 33% increase over the previous quarterly versus a $0.30 per share.
Next, Mariott International also reported that its BoD has advanced the authorization to repurchase common stock by an extra 25 million shares. With that, as of November 9, 2022, the company has repurchased approximately 11.6 million shares for $1.8 billion.
MAR Stock Chart
Over the last month of trading, shares of MAR stock have advanced by 8.16%. Meanwhile, so far this year MAR stock has outperformed the broader markets. During Friday’s mid-morning trading session, MAR stock is trading modestly higher by 0.70%, currently at $161.78 a share.
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