Are These The Best Cyclical Stocks To Buy In The Stock Market Today?
For investors looking to benefit from an improving economy, cyclical stocks would be a top pick in the stock market. Looking back a few months ago, the cyclical industry was home to some of the most active stocks around. As more consumers got vaccinated and pandemic restrictions loosened, this would make sense then. However, flash forward to the present day, and things are looking rather different. Despite a growing job market, stabilizing inflation, and a progressing infrastructure bill rollout, one question stands out among investors. That is, will the delta variant of the coronavirus throw a wrench into all of this progress?
While the rising number of cases seems alarming now, countermeasures are being actively explored on this front. Vaccine companies like Pfizer (NYSE: PFE) are now looking to introduce a third booster shot to bolster immune responses. Meanwhile, the U.S. Food and Drug Administration is looking to approve booster shots for immunocompromised people, according to CNN. With all of this in mind, some investors could see an opportunity among the top cyclical stocks in the stock market today.
For instance, we could look at the likes of PayPal (NASDAQ: PYPL) and Tilray (NASDAQ: TLRY). On one hand, PayPal provides vital digital payment services that consumers would rely on when shopping. This would also be the case should pandemic conditions worsen given the relevance of PayPal in a contactless payment ecosystem. On the other hand, Tilray continues to broaden its consumer offerings by launching new medical cannabis edibles in Canada. With consumer discretionary spending on marijuana rising, TLRY stock would also be in focus now. Notably, companies’ shares are looking at gains of over 210% since their pandemic era lows. As such, could one of these hot cyclical players be worth keeping an eye on now?
Top Cyclical Stocks To Buy [Or Sell] This Week
- Bank of America Corporation (NYSE: BAC)
- Walt Disney Company (NYSE: DIS)
- FuboTV Inc. (NYSE: FUBO)
Bank of America Corporation
To begin with, we have the Bank of America Corporation (BAC). In brief, BAC is among the leading financial institutions in the world today. Through its vast array of financial services, the company caters to clients across the globe. This can range from individual consumers and small-medium businesses to large corporations. To highlight, BAC’s core offerings include investment banking, asset management, and risk management solutions to name a few. In the U.S. alone, BAC serves approximately 66 million consumers via its network of 4,300 retail financial centers. The company also offers convenience in the form of 17,000 ATMs strategically located across the nation.
For the most part, I could see investors eyeing BAC stock amidst the current market conditions. Evidently, the company’s shares are already up by over 39% year-to-date. Now, BAC’s services would be in demand as consumer demand continues to rise across the board. On top of that, the company is also seeing an uptick in user activity on the digital banking front. According to BAC, its online platform currently boasts over 41 million active users with 32 million mobile users.
While all this is great, the company continues to perform in terms of financials as well. In its second-quarter fiscal, BAC reportedly brought in a total revenue of $23.09 billion. This marks a sizable year-over-year leap of 34%. Additionally, the company also posted surges of 161% in net income and 178% in earnings per share over the same period. Given all of this, will you be investing in BAC stock?
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Walt Disney Company
Following that, we will be taking a look at the Walt Disney Company. If anything, consumers, and investors across the globe would be somewhat familiar with Disney’s offerings. Through its industry-leading mass media and entertainment portfolio, the company continues to make waves in the entertainment scene today. Despite facing initial challenges at the onslaught of the pandemic, Disney strategically restructured its portfolio to fit the current times. Now, the company boasts one of the top video streaming services worldwide on top of its world-class tourism services.
Because of this, it would make sense that investors are turning their radars towards DIS stock. In fact, Morgan Stanley (NYSE: MS) appears to be particularly keen on the company’s shares now. In a recent note, the firm raised its price target to $210 and hit DIS stock with an Overweight rating. Even as the company’s shares have mostly been flat for the year, analysts seem to see more room for growth moving forward.
On that note, Disney is set to report its second-quarter earnings after today’s closing bell. According to Wall Street’s estimates, the company could be looking at an earnings per share of $0.54 on revenue of $16.76 billion. This would indicate that a potential year-over-year revenue increase of 42% could be on the books for the company. After considering all of this, would DIS stock be a top buy for you?
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FuboTV Inc.
Another company to consider among cyclicals now would be Fubo. In essence, Fubo is an upcoming name in the streaming industry today. The company primarily offers consumers live-sports content, a niche area of the streaming market that continues to gain momentum. Accordingly, as cord-cutting trends persist, Fubo seems keen to get a slice of the streaming industry pie now. More importantly, what sets Fubo apart from its streaming peers would be the element of interactivity it plans to offer.
Namely, the company is looking to launch its Fubo Sportsbook service later this year. According to Fubo, it will act as a comprehensive sports entertainment experience through online sports betting. With the rise in popularity of online betting throughout the pandemic, Fubo would be strategically expanding its streams of revenue. After considering all of this, it would not surprise me to see investors being keen on FUBO stock right now.
For one thing, this could be the case this week. This would be thanks to the company reporting record figures across the board in its latest quarter fiscal. In it, Fubo posted a record total revenue of $130.9 million, marking a whopping 196% year-over-year leap. Moreover, the company also saw year-over-year increases of 281% in ad revenue and 138% in total paid subscribers as well. With Fubo seemingly firing on all cylinders now, would you consider adding FUBO stock to your portfolio?
