Are These Top Cyclical Stocks On Your Radar Now?
While economic concerns may have some investors looking for recession-proof stocks, some may be considering cyclical stocks now. After all, with over seven weeks of continuous losses in the stock market, investors could be considering buying on the dip. Across the board, stocks continue to feel the pinch from macroeconomic headwinds. Despite all of this, there is no shortage of excitement to consider in the cyclical space. For instance, we could take a look at the likes of semiconductor manufacturing giant, Broadcom (NASDAQ: AVGO). As of this week, the company is acquiring cloud computing tech firm, VMware (NYSE: VMW) for $61 billion. This would be amidst efforts to diversify its core business towards enterprise software.
At the same time, even retailers like Dollar General (NYSE: DG), and Dollar Tree (NASDAQ: DLTR) are in focus. Accordingly, this is thanks to both firms posting commendable figures in their latest earnings updates yesterday. What’s more, the two companies are also providing positive updates to their respective outlooks for the fiscal quarter and year respectively. Likewise, department store chain operator Nordstrom (NYSE: JWN) also raised its outlook for the current quarter, according to its earnings report. All in all, some would argue that the current operating conditions would serve to highlight exceptional firms in their fields. With all this in mind, here are four more cyclical stocks to check out in the stock market today.
Cyclical Stocks To Buy [Or Sell] Right Now
- Macy’s Inc. (NYSE: M)
- Alibaba Group Holding Ltd. (NYSE: BABA)
- Williams-Sonoma Inc. (NYSE: WSM)
- NVIDIA Corporation (NASDAQ: NVDA)
Macy’s Inc.
Macy’s is a cyclical company that provides a wide selection of quality brands at a great value. This ranges from off-price to luxury items. Its three segments are known as Macy’s, Bloomingdale’s, and Bluemercury. It also has one of the largest e-commerce businesses in retail and has a nationwide footprint to deliver the most convenient and seamless shopping experiences. Today, the company reported a strong first quarter and also raised its earnings guidance on top of that. Diving in, it reported net sales of $5.34 billion, an increase of 13.6% year-over-year. It also posted a diluted earnings per share of $0.98 for the quarter. Macy’s also repurchased $600 million in shares under a $2 billion share repurchase program in this quarter.
“Our company delivered solid results in the first quarter despite a challenging operating environment. We delivered strong earnings, beating our estimates, and sales that were in line with our expectations. While macroeconomic pressures on consumer spending increased during the quarter, our customers continued to shop. We saw a notable shift back to occasion-based apparel and in-store shopping, as well as continued strength in sales of luxury goods. Our omnichannel ecosystem, which spans the value spectrum, has supported our ability to flex our wide assortment of categories, products and brands to capture consumer demand despite the volatile environment,” said Jeff Gennette, chairman, and chief executive officer of Macy’s. Given this piece of news, is M stock a buy right now?
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Alibaba Group Holding Ltd.
Following that, we have Alibaba, a multinational tech company that specializes in e-commerce, retail, and IT. Its platform enables businesses to transform the way they market and improve their efficiencies. The company’s tech infrastructure and marketing reach also help retailers and businesses leverage the power of new technology to grow their markets. Alibaba also owns a logistics business called Cainiao, which is one of the largest ‘unicorn’ companies in China. On May 26, 2022, the company announced its March quarter and full fiscal-year 2022 financials.
Revenue for the quarter was $32.18 billion, an increase of 9% year-over-year that was driven by revenue growth of its China commerce segment. Alibaba’s annual active customers also reached approximately 1.31 billion at the end of March, an increase of 28.3 million from the previous quarter. The company also notes that its international commerce retail business, which includes Lazada and AliExpress among others, generated a gross merchandise value of approximately $54 billion and served over 300 million active customers. All things considered, is BABA stock a top cyclical stock to buy today?
Williams-Sonoma Inc.
Another cyclical name to consider now would be Williams-Sonoma or WSM, for short. In brief, it identifies itself as the world’s largest “digital-first, design-led and sustainable home retailer.” Overall, the company offers consumers a vast array of home products. The likes of which WSM sells via a diverse portfolio of brands including its flagship Williams Sonoma and Pottery Barn segments. As it stands, WSM has operations across the U.S., Puerto Rico, Australia, the U.K., and Canada. On top of that, it also offers international shipping to shoppers worldwide. More importantly, WSM stock is gaining momentum in the stock market today. Accordingly, this coincides with the company reporting its latest quarter financials this week.
According to the press release, WSM’s earnings per share for the quarter is $3.50. Also, the company’s total quarterly revenue is $1.89 billion. To put things into perspective, this is against Wall Street consensus estimates of $2.90 and $1.81 billion. With the company topping estimates at the top and bottom lines, it comes as no surprise that investors are eyeing WSM stock now. Weighing in on all this is CEO Laura Alber. She argues that WSM’s latest performance highlights the strength of its “multi-brand portfolio.” In the long run, Alber notes that “a solid line-up of growth initiatives and operational improvements” is driving WSM to maintain its current positive operational outlook. After considering all of this, would WSM stock be a top buy in your book?
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Nvidia Corporation
Last on our list today, we have Nvidia Corporation, a tech company that produces graphics processing units. It also specializes in products and platforms for the gaming, professional visualization, data center, and automotive markets. The company reported its first-quarter financials for fiscal 2023 on Wednesday. Firstly, it reported a record quarterly revenue of $8.29 billion, increasing by 46% year-over-year.
This was driven by record quarterly revenue in both its Data Center and Gaming segments. Nvidia also reported GAAP earnings per diluted share of $0.64 per quarter. The company says that the effectiveness of deep learning to automate intelligence is driving companies across the board to adopt Nvidia’s products for AI computing. It also says that it is gearing up for the largest wave of new products in its company’s history. Consumers can expect new GPU, CPU, DPU, and robotics processors in the second half of the year. With that in mind, will you consider having NVDA stock in your portfolio?
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