4 cyclical stocks to watch in February 2022
4 Top Cyclical Stocks to Watch in the Stock Market Today
Cyclical stocks could arguably do well in the stock market today. Overall, this would be in line with the current pace of economic recovery. As we approach the two-year mark since the initial coronavirus attack, the return to normal continues. In particular, the economy appears to be accelerating at a faster pace than expected. After all, with inflation soaring and the Fed looking to hike rates, it’s all too obvious. However, even in the face of all this, cyclical markets continue to thrive.
For example, we could take a look at the latest consumer spending numbers from the US Department of Commerce. Throughout January, retail sales rose 3.8% year over year. That’s well above economists’ estimates of a 2% rise. In theory, current data suggests that consumer spending trends remain strong even after the holiday season. So much so that cyclical consumer-oriented stocks such as Apple (NASDAQ: AAPL) are thriving despite supply chain pressures. In addition, businesses in the reopening trade such as hilton (NYSE: HLT) are also seeing their business rebound. Clearly, the company posted earnings per share of $0.72 on revenue of $1.84 billion, beating analyst estimates across the board. With all the excitement in cyclical sectors, could any of these companies be among the best in the stock market right now?
Cyclical stocks to buy [Or Sell] This week
Generac Management Inc.
First of all, we have Generac Holdings, one of the world’s leading designers and manufacturers of energy technology solutions. In fact, the company provides power generation equipment, energy storage systems, grid service solutions and other energy products. It also serves the residential, light commercial and industrial markets. As one of the only significant market players to focus primarily on these products, the company continues to maintain a leading position in the electrical equipment market. GNRC stock is up over 8% on today’s opening bell.
Investors are likely reacting positively to the company’s fourth quarter and full-year 2021 financial statements it released today. Plunging, net sales hit a record $1.07 billion for the quarter, a 40% year-over-year jump. Sales of residential, commercial and industrial products also increased by more than 40%. Net income for the quarter was $143 million or $2.04 per share. The company also claims that it achieved record quarterly shipments and production levels at the end of 2021. Given this news, is GNRC stock worth buying right now?
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Crocodile is a cyclic company that manufactures and markets its brand of foam clogs. It is a global leader in innovative athletic footwear for men, women and children. It offers a wide range of all-weather products while staying true to its core heritage of molded footwear. The company’s products also feature Croslite material, an exclusive and revolutionary technology that gives the products its soft, comfortable, lightweight, non-marking and odor-resistant qualities. CROX stock is up more than 23% in the past year alone.
The company also announced fourth-quarter and full-year earnings today. First, revenue was $586.6 million, a 42.6% year-over-year increase. Operating profit rose 147.5% to $160 million, while it also posted diluted earnings per share of $2.57 for the quarter. Andrew Rees, Managing Director had this to say, “Our fourth consecutive year of revenue growth was fueled by continued strong consumer demand for the Crocs brand globally. We are excited about our sustainable growth trajectory for the Crocs and HEYDUDE brands and are confident in our plan to reach $6 billion in revenue by 2026.” For these reasons, is the CROX stock one of the main cyclical stocks to invest in?
Trade office inc.
The trading post is a global technology company that markets a software platform used by digital advertising buyers to purchase data-driven digital advertising campaigns. It does this on different ad formats and devices. Despite reporting better-than-expected earnings today, the company’s share price is down more than 10%. Could this offer investors an opportunity to buy on the downside?
Diving into its financials, continued equity gains on its platform were $6.2 billion for 2021, a 47% year-over-year increase. It also reported revenue of $395.6 million for the quarter, a 24% year-over-year increase. It also reported diluted earnings per share of $0.02. Over the past year, the company has also announced a series of partnerships with walmart (NYSE: WMT) and Samsung (OTCMKT: SSNLF). Together with Walmart, the two companies launched a new demand-side platform based on the Trade Desk platform. It will provide advertisers with access to unique Walmart shopper data and sales measurement data in a self-service platform. With these developments, is TTD stock a buy?
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Another name to consider among cyclical companies now would be Macy’s. In short, it identifies itself as one of the leading omnichannel fashion retailers in the United States. Through its nationwide network of stores, the company primarily operates through its three main divisions. These are the retail brands Macy’s, Bloomingdale’s and Bluemercury. Overall, the company offers a wide range of products that cater to different consumer demographics. In addition to its fashion offerings, it also sells cosmetics and home furnishings among other consumer goods. More importantly, investors seem to be focusing on M stocks in the stock market today.
As a result, the current jump in the company’s stock is due to positive analyst coverage. To know, Evercore (NYSE: EVR) Analyst Omar Saad gave the M stock an outperform rating, raising it significantly over In-Line. According to Saad, the firm sees an opportunity for Macy’s to “more aggressively leverage its core assets to create significant additional net worth.As a result, M stock is currently looking at gains of over 4% at today’s opening bell. This would represent gains of over 70% over the past year. With current momentum Macy’s in mind, would M stock be a great buy for you?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.