Top Cyclical Stocks To Buy Right Now? 3 To Watch

3 Trending Cyclical Stocks To Watch In The Stock Market Now

It stands to reason that cyclical stocks would be among the most active stocks today in the stock market. Understandably, with the economy looking to spring back to life towards post-pandemic levels, this would be the case. In fact, investors received more good news regarding the job market earlier today. According to the Labor Department’s May jobs report, the unemployment rate fell to 5.9%, a new pandemic-era low. Now, countering this would be the fact that non-farm payrolls came in at 559,000 versus estimates of 650,000. While the economy may not be recovering at breakneck speeds, it is gradually on the rise. As such, investors could be eager to jump on the top cyclical stocks now.

For the most part, I wouldn’t blame them for doing so. Take the hotel industry for example. Indeed, it was one of the hardest-hit sectors at the onslaught of the pandemic. Now, hotel industry players such as Marriott International (NASDAQ: MAR) and Hilton Hotels (NYSE: HLT) have more than doubled since their pandemic era lows. Both companies’ shares have impressively already returned to pre-pandemic levels. It seems that investors are more than keen to bet on the pent-up consumer demand for travel now.

Also, industrial players like Caterpillar (NYSE: CAT) and John Deere (NYSE: DE) continue to flourish as well. With the duo’s core businesses being tied closely to the construction and agriculture industries respectively, I can understand why. After all, both sectors stand to benefit in times of economic growth. Now, both CAT stock and DE stock have skyrocketed well beyond pre-pandemic levels towards new heights. Across the board, cyclicals appear to be leading the broader market in gains this year. On that note, here are three top cyclical stocks worth noting in the stock market today.

Best Cyclical Stocks To Watch This MonthGeneral Electric Company

General Electric (GE) is a multinational conglomerate that is headquartered in Boston. For more than 125 years, GE has been an industry leader and continues to help the world be more efficient and reliable. With its dedicated team and leading technology, the company is the 33rd largest firm in the U.S. by gross revenue in the Fortune 500. GE stock currently trades at $13.95 as of 11:23 a.m. ET and is up by over 75% year-over-year. Recently, the company won one of the largest onshore wind contracts in Southeast Asia.

top cyclical stocks (GE stock)Source: TD Ameritrade TOS

In detail, the company announced it had secured a contract with BIM Wind JSC, a project joint venture company between AC Energy of Ayala Corporation and BIM Energy Holding. BIM Group is one of Vietnam’s largest privately-owned conglomerates. The joint venture will see GE supply, install, and commission GE Cypress onshore wind turbines for BIM Wind’s 88 MW wind farm located in Ninh Thuan Province, South Central Vietnam. The 88 MW order is the company’s largest Cypress platform deal in Southeast Asia, eclipsing three other Cypress orders in Vietnam over the last 12 months.

The company has been aggressively pushing its renewable energy business. On Tuesday, it announced an independent report by PwC Canada, commissioned by GE Hitachi Nuclear Energy. The report highlights the economic benefits of deploying its BWRX-300 small modular reactors in Canada and the potential export of this technology worldwide. Firstly, the construction and operation of the first BWRX-300 reactor in Ontario is expected to generate approximately $2.3 billion in GDP, $1.9 billion in labor income, and more than $750 million in federal, provincial, and municipal tax revenue. Given the prowess of the company’s energy segment, will you consider watching GE stock?

Five Below Inc.

Five Below is a chain of specialty discount stores that sells products that cost up to $5. In essence, the company is a leading high-growth value retailer for tweens, teens, and beyond offering high-quality products. The company has over 1,000 stores in 39 states. FIVE stock currently trades at $186.30 as of 11:40 a.m. ET. The company today reported strong first-quarter financials, much to investors’ delight.

best cyclical stocks (FIVE stock)Source: TD Ameritrade TOS

Diving in, the company reported net sales of $598 million, an increase of 64% year-over-year. Net income for the quarter was $49.6 million and its earnings per share increased by 91% to $0.88 compared to a year earlier. Joel Anderson, President, and CEO of Five Below had this to say, “We are excited to continue growing and innovating across our key strategic initiatives of product, experience, and supply chain. We are on track to open 170 to 180 new stores this year and offer our unique Five Below experience to more new customers. With the inherent flexibility of our eight worlds, unique merchandising approach and focus on innovation, we believe we remain in a position of strength to continue growing Five Below and driving sustainable, long-term value for all stakeholders.

The company, in its second quarter outlook, expects net sales to be in the range of $640 million to $660 million based on opening approximately 30 new stores. Net income is expected to be in the range of $56.9 million to $63.7 million. For these reasons, will you add FIVE stock to your watchlist?

[Read More] Best Growth Stocks To Buy Now? 5 Electric Vehicle Stocks To Watch

Zumiez Inc.

Another name to watch in the cyclical space now would be Zumiez Inc. In brief, the Washington-based company identifies as a multinational specialty apparel store. Aside from apparel, the company also markets footwear, accessories, and hard goods. Notably, the company’s offerings mainly cater to young men and women looking to catch up with the latest trends. This summer, the company’s target market would be in the market for new outfits. When you couple this with the rising vaccination rates, things could be looking up for Zumiez now. As it stands, ZUMZ stock is looking at year-to-date gains of 30% and currently trades at $46.52 a share as of 11:39 a.m. ET.

cyclical stocks to buy now (ZUMZSource: TD Ameritrade TOS

Just yesterday, the company reported a record first-quarter fiscal, wowing investors. To begin, Zumiez reported earnings per share of $1.03, topping Wall Street’s consensus estimates of $0.04 a share. On top of that, the company also doubled its net income compared to the same quarter last year. Despite having a portion of its brick-and-mortar stores remaining close, Zumiez continues to prosper. 

Looking forward, the company appears to be optimistic as well. Zumiez cited its “strong balance sheet and differentiated strategies” as key factors that will help it maintain positive momentum this year. Particularly, the company believes it is well-positioned to grow its global market share and increase value to shareholders in the long term. Having read all of this, would you consider ZUMZ stock a top watch now?

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