4 Trending Cyclical Stocks To Add To Your Radar This Week
Cyclical stocks appear to be back in vogue in the stock market now. For the most part, this would be thanks to the Federal Reserve’s latest call on its monetary policies. Namely, the Fed’s are speeding up their taper plans and are looking to introduce an interest rate hike next year. Among the core reasons for this would be the current state of the U.S. economy. Thanks to consumer markets with generally strong balance sheets and aggressive vaccination efforts, the reopening trade continues to flourish. With all that said, it comes as no surprise that investors are eyeing the top cyclical stocks around now.
At the same time, companies in the cyclical space are not sitting idly by as well. On one hand, you have industrial names such as Boeing (NYSE: BA) catering to increased demand for aircraft. In fact, the firm is already looking towards newer ways to refine its engineering process. Earlier today, the company revealed plans to design new aircraft in the metaverse. This, in theory, would be done via immersive 3-D engineering software by mechanics worldwide connected via augmented reality headsets.
On the other hand, you also have consumer discretionary names like Nike (NYSE: NKE) to consider as well. To keep with the latest trends in the consumer’s collectibles market, Nike acquired RTFKT. With this non-fungible token (NFT) studio, it could be looking to expand its portfolio of collectibles to the digital space. By and large, with all this activity among cyclical stocks now, you might be keen on the sector yourself. Should that be the case, here are four top cyclical stocks to consider in the stock market now.
Best Cyclical Stocks To Watch This Month
- Canopy Growth Corporation (NASDAQ: CGC)
- Marvell Technology Inc. (NASDAQ: MRVL)
- Winnebago Industries Inc. (NYSE: WGO)
- Wells Fargo Inc. (NYSE: WFC)
Canopy Growth Corporation
Canopy Growth is a Canadian-based cannabis cultivator and provider of cannabinoid-based consumer products. For starters, the company offers weed enthusiasts a wide array of offerings worldwide. This ranges from high-quality dried flowers, cannabis oils, infused beverages, and vaporizers, just to name a few. Through its owned and partnered cannabis production platforms, the company has created a dominant, global business with the potential to generate a significant and sustainable return for its shareholders.
On Wednesday, the company announced that it has entered into an agreement to divest its subsidiary business, C3 Cannabinoid Compound Company to Dermapharm Holding SE. With this divestiture of C3, Canopy Growth will continue its evolution into a CPG-modelled organization and further its strategy of driving focus and consistent business across its core markets. The company will continue to leverage its high-quality supply of Canadian cannabis products for the medical channel in its core international markets. Given this piece of news, is CGC stock worth buying right now?
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Marvell Technology Inc.
Following that, we have Marvell, a company that develops and produces data infrastructure semiconductor solutions for various sectors. It first revolutionized the digital storage industry by moving information at speeds never thought possible. Today, that same breakthrough innovation remains at the heart of the company’s storage, network infrastructure, and wireless connectivity solutions. MRVL stock is up by over 15% in the past month.
Recently, Jefferies (NYSE: JEF) analyst Mark Lipacis maintained a ‘Buy’ rating on Marvell, setting a price target of $105. Last week, the company was awarded two Global Semiconductor Alliance (GSA) Awards in the category of “Most Respected Public Semiconductor Company” for companies achieving $1 billion to $5 billion annual sales, and the “Analyst Favourite Semiconductor Company”. This would mark the third time that Marvell has received recognition from GSA. With the global chip shortage likely to persist into 2023, should you include MRVL stock on your watchlist today?
Winnebago Industries Inc.
Another name to consider among cyclical stocks today would be Winnebago Industries. In essence, Winnebago is a manufacturer of recreational vehicles (RVs). Notably, it is the leading provider of outdoor lifestyle products in North America. Through its Winnebago, Grand Design, Chris-Craft, and Barletta brands, the company caters to consumers’ leisure travel and outdoor recreation needs. Now, with the Omicron Covid variant impacting international travel, consumers could be turning to Winnebago’s RVs instead. As a result, some would argue that this could lead to WGO stock gaining traction in the stock market.
More importantly, WGO reported its latest quarterly earnings report on Thursday. In it, Winnebago reported earnings per share (EPS) of $3.51, smashing analyst estimates of $2.26. Furthermore, the company also raked in a total revenue of $1.2 billion for the quarter, marking year-over-year gains of 46%. In the long run, CEO Michael Happe sees “a meaningful runway for further profitable growth” across Winnebago’s portfolio. All things considered, would WGO stock be a top cyclical stock in your books now?
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Wells Fargo Inc.
Last but not least, we will be taking a look at Wells Fargo. Overall, most would be familiar with the firm’s work given its position as one of the biggest banks in the U.S. By the bank’s estimates, it currently manages approximately $1.9 trillion in assets across its massive portfolio. Additionally, Wells Fargo also notes that it serves one in three U.S. households and over 10% of small businesses nationwide. Whether it is consumer, commercial, or corporate and investment banking, Wells Fargo is a go-to for many. Likewise, WFC stock could be a go-to for investors given the recovering economy alongside expected interest rate hikes in 2022.
As it stands, shares of WFC stock are up by over 60% year-to-date. Even so, the company continues to find new ways to refine its business. As of earlier this week, Wells Fargo is working with HSBC (NYSE: HSBC) to optimize foreign exchange (FX) transactions. Through a bilateral agreement, the duo are now employing blockchain tech to help make FX actions smoother. How they plan to do this is via a jointly shared settlement ledger to process a wide array of currency exchanges. As such, would you consider WFC stock a top pick in the stock market now?
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