The best stocks to invest in? 5 cyclical stocks for your list
Are these top cyclical stocks in your portfolio today?
After a difficult day of trading, the broader stock market appears to be on the mend. At the same time, there also seems to be a renewed interest in major cyclical stocks. Overall, this could be partly due to the steady stream of notable industry earnings this week. Even though companies in this space are facing macroeconomic headwinds at all levels, they continue to make progress. With that, alongside a seemingly resilient consumer balance sheet, investors may not yet want to ignore cyclical stocks.
For one thing, strong earnings seem to be a trend in a wide variety of cyclical companies now. To take UPS (NYSE:UPS) and You’re here (NASDAQ: TSLA) for example. Both companies beat Wall Street estimates in their latest quarterly earnings calls over the past week. On the one hand, UPS is making the most of the increased demand for e-commerce deliveries by raising prices accordingly. On the other hand, Tesla continues to dominate the electric vehicle industry amid the global transition to combustion engine automobiles. In fact, many cyclical stocks are making waves in the stock market today. Here are five more to know.
Cyclical stocks to buy [Or Sell] This week
Kicking things off today is Enphase Energy. In short, the company specializes in providing home solar energy solutions to consumers. Simply put, the company designs and manufactures home energy solutions ranging from solar generation to home energy storage. Not to mention, Enphase’s systems also feature web-based interfaces for real-time, 24-hour monitoring and control. For today, ENPH stock appears to benefit from the company’s latest quarterly earnings report. .
To cut to the chase, the company is posting earnings of $0.79 per share along with revenue of $441 million. To put it into perspective, that smashes Wall Street estimates of $0.67 million and $432 million respectively. Notably, the company’s revenue grew 46% year-over-year to an all-time high. Despite all of this, Enphase is seeing further growth with revenue prospects of between $490 million and $520 million, above the consensus forecast of $475 million. With all this and the plans of “tripled in Europe,“It’s easy to see why ENPH stock is rising now. Would you accept?
Another name to consider among cyclical players today would be Visa. Most are now familiar with this fintech industry lead. This would be the case given that its basic financial services are readily available around the world. Namely, the company’s Visa-branded credit, debit and prepaid cards are its main offerings. Due to the aforementioned surge in consumer spending, V stock is now gaining attention in the stock market.
For starters, Visa crushes Wall Street consensus forecasts in its latest financial release today. In it, the digital payments titan sees earnings of $1.79 per share, beating estimates by 14 cents. Additionally, the company also raked in total revenue of $7.19 billion for the quarter, beating consensus expectations of $6.83 billion. Overall, the company cites a rebound in consumer spending and improving pandemic conditions for the current uptick in travel-related transactions. Would any of that make stock V a top pick on your books right now?
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Brookfield Asset Management Inc.
Following this, we have Brookfield, a global leader in alternative asset management. Impressively, it has over $650 billion in assets under management. This extends to real estate, infrastructure, renewable energy and private equity, among others. The company continues to generate attractive long-term risk-adjusted returns for the benefit of its clients and shareholders. In addition, he also earns asset management income for managing a range of public and private investments.
Today, Brookfield was upgraded by Credit Suisse Group analysts to an outperform rating. Analyst Andrew Kuske also raised his price target to $71.50 from $68.00. Shares of BAM are currently trading near the $50 mark. “With the continued repackaging of the real estate portfolio by BAM, with potential rotation of alternative asset managers and continued favorable fund flow into the Canadian market, we believe a number of conditions exist for BAM’s outperformance,” Kuske wrote in a note to clients. He also notes that rising rates and uneven economic impacts bode well for the company’s global operations. All things considered, are BAM stocks worth investing in right now?
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Kraft Heinz Company
Kraft-Heinz is a company that continues to serve millions of customers around the world. The company received the Industry Mover Status for Sustainability Award from S&P Global for continuing to showcase some of the best ESG metrics. The Company’s Board of Directors has declared a regular quarterly dividend of $0.40 per share which will be payable on June 24, 2022 to stakeholders of record as of May 27, 2022.
Today it also released its first quarter financials for 2022. Taking a dip, net sales for the quarter came in at $6 billion. Organic net sales increased 6.8% year over year. The company also posted non-GAAP earnings per share of $0.60, beating estimates of $0.07. Additionally, it also raised its expectation for 2022 organic net sales to a mid-single-digit percentage, which could reflect strong performance to date and continued business momentum. That being said, should investors be on the lookout for KHC shares?
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Last on our list today we have Nvidia, a multinational technology company that sells its graphics processing unit (GPU) and technology services. In fact, it is a pioneer of GPUs and essentially spurred the growth of high performance computing and artificial intelligence (AI). The company’s pioneering work in accelerated computing has also reshaped trillion-dollar industries like transportation and healthcare.
On April 26, 2022, the company released its April Nvidia Studio Driver to optimize some of the most popular 3D applications like Unreal Engine 5 and Cinema4D. The driver also supports the new NVIDIA Omniverse connectors from Blender and Redshift. Last month, the company also announced a strategic collaboration with Kroger (NYSE: KR) to reinvent the shopping experience. To do this, it will use AI-enabled apps and services. Kroger is one of the largest grocers in the United States. After all that, are NVDA shares a buy?
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