Cyclical Stocks Make a Comeback

For investors seeing a light at the end of the tunnel, it may make sense to consider investing in cyclicals now.

Cyclicals are closely tied to the state of the economy. These are companies that make or sell discretionary items and services that are in demand when the economy is doing well.

The big picture: There are signs of an economic recovery approaching.

  • Interest rate hikes will tamp down inflation.
  • The latest unemployment claims came in below expectations.
  • Pandemic restrictions are being lifted across the country.

For investors who can see the light at the end of the tunnel, it makes sense to look into investing in this sector now.

By the numbers: Here is a closer look at three cyclical companies on our watchlist.

  • Roku (ROKU): Analysts forecast a +45.45% increase over the next 12 months.
  • Disney (DIS): The company’s earnings have begun to improve as people become more comfortable taking that delayed family vacation or going out to see movies. The median analyst estimate represents a +37.30% increase over the next year.
  • Expedia (EXPE): With more people traveling Expedia should see a boost in bookings. Analysts are predicting a +12.96% over the next 12 months.

Invest with more certainty while the future remains uncertain, see filtered outcomes for ROKU, DIS, EXPE

Source: NASDAQ

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