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5 Best Cyclical Stocks To Watch This Week

Given the current state of the economy, could these cyclical stocks become the best performers in 2021?
The post 5 Best Cyclical Stocks To Watch This Week appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Do You Have These Top Cyclical Stocks On Your Watchlist?

For investors, cyclical stocks appear to be a very viable play in the stock market today. Naturally, this is thanks to how closely companies in this industry follow the cycles of the economy, hence the name. While most investors would know this, what exactly are cyclical stocks, might you ask? For the most part, cyclical stocks represent companies that produce or market discretionary wares and services. The likes of which are often in demand when the economy is doing well. This ranges from top airline stocks like American Airlines (NASDAQ: AAL) to vital manufacturing companies such as Honeywell (NASDAQ: HON). Overall, with the economy booming now, some investors would argue that cyclical stocks could do the same.

Just last week, CNBC’s Jim Cramer commented on the recent tech pullbacks and how they relate to cyclicals. Namely, the Mad Money host argues that high growth tech stocks are now a “source of funds” for cyclical stocks. Moreover, Cramer also believes that cyclical players whose products are in strong demand while supplies remain limited could continue gaining. Fortunately for investors, there are plenty of companies to choose from in this category now. On that note, here are five of the hottest cyclical stocks in the stock market now.

Best Cyclical Stocks To Watch Today

Target Corporation

Target is a cyclical company that focuses on retail. In fact, it is one of the largest retailers in the U.S. and is a component of the S&P 500 Index. The company boasts over 1,900 stores in the U.S. and has over 40 distribution centers.

Impressively, the company claims that 75% of the U.S. population lives within 10 miles of a Target store. Target has been one of the few cyclical companies that weathered through the pandemic exceptionally well. The company reported its first-quarter financials Wednesday.

Comparable sales for the quarter increased by 22.9% year-over-year. Digital comparable sales grew by a commendable 50%, on top of a 141% growth a year ago. First-quarter GAAP earnings per share was $4.17, skyrocketing by 643.2% compared to a year ago. It also gained more than $1 billion in market share in the first quarter. Total revenue for the quarter was a whopping $24.19 billion, a 23.4% increase year-over-year. Given all of this, will you consider adding TGT stock to your watchlist?

[Read More] Top Fintech Stocks To Buy Right Now? 3 To Watch

Exxon Mobil Corporation

Exxon is a multinational oil and gas corporation that is headquartered in Texas. In essence, it is an industry leader in the energy and chemical manufacturing businesses. The company has also invested heavily in the research and development of next-generation technologies to help fuel global economies and address risks of climate change. XOM stock has been up by over 40% year-to-date.

epicenter stocks (XOM stock)

In late April, the company reported its first-quarter financials for 2021. In it, ExxonMobil reported earnings of $2.7 billion for the quarter or $0.64 per share assuming dilution compared with a loss of $610 million a year ago. Its cash flow from operating activities of $9.3 billion fully funded its dividend and capital expenditures.

Also, it reduced its debt by over $4 billion as well. The company also continues to advance several initiatives to reduce emissions. ExxonMobil also launched its Low Carbon Solutions business to commercialize an extensive low-carbon technology portfolio. For these reasons, is XOM stock a top cyclical stock to consider watching?

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TJX Companies Inc.

TJX is a multinational off-price department store corporation. The company has over 4,500 stores in nine countries, four e-commerce sites, and approximately 320,000 associates. Its mission is to deliver great value every day to its customers.

best cyclical stocks (TJX stock)

Specifically, its goods and products are generally 20% to 60% below full-price retailers. The company also reported its first-quarter financials Wednesday and has exceeded its expectations.

Firstly, overall open-only comparable store sales increased by 16% compared to a year ago. Net sales for the quarter were $10.1 billion, more than doubling year-over-year. Its HomeGoods segment comparable sales increased by 40% year-over-year. It also reported that its U.S. divisions delivered outstanding double-digit open-only comp store sales increases. With so much happening with the company, is TJX stock worth watching right now?

[Read More] Best Stocks To Invest In 2021? 4 E-Commerce Stocks To Know

Walmart Inc.

Next, we will be looking at the world’s largest retailer, Walmart. Through its massive network of hypermarkets spanning 24 countries, the company continues to dominate the retail space. According to Walmart, it’s over 10,000 stores cater to an estimated 220 million customers and members globally. More importantly, WMT stock would be in the spotlight now thanks to the company’s recent quarterly earnings posted Tuesday.

best retail stocks (WMT stock)

Notably, Walmart reported earnings per share of $1.69 on revenue of $138.3 billion for the quarter, beating Wall Street’s estimates. According to CEO Doug McMillon, this is mostly thanks to Walmart’s rapidly growing e-commerce sales.

Looking forward, the company also seems confident, raising its full-year 2021 earnings outlook on anticipated “pent-up demand throughout 2021”. Solid earnings aside, Walmart seems to be busy expanding its services as well. Just last week, the company acquired virtual fitting room company, Zeekit, marking a push into the apparel market. Given all of this, would you say that WMT stock is a top watch in the stock market today?

[Read More] 4 Biotech Stocks To Watch This Week

L Brands Inc.

Following that, we have yet another top player in the retail space now, L Brands. If anything, most consumers today would be familiar with the company’s flagship Victoria’s Secret and Bath & Body Works brands. In terms of scale, the company operates out of over 2,600 stores in the U.S., Canada, and Greater China. Not to mention, L Brands also boasts 700 franchise locations across the rest of the globe.

top cyclical stocks (LB stock)

Ideally, as consumer spending trends gain momentum, L Brands would stand to benefit in the long run. This could put LB stock on investors’ radars today seeing as it is slated to post first-quarter earnings after the closing bell. As it stands, the company’s shares are currently looking at massive gains of over 400% in the past year.

Speaking of its upcoming earnings report, L Brands appears confident of its ability to perform. Back in March, the company raised its earnings per share top-line estimates for the quarter by over 50%. According to L Brands, this is mainly thanks to improving sales trends boosted by favorable consumer spending habits. Meanwhile, the company is also looking to spin off its two key divisions as per its latest news release last week. Given all of this, we could be looking at exciting times ahead for LB stock. Having said that, will you be keeping an eye on it now?

The post 5 Best Cyclical Stocks To Watch This Week appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

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While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

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According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

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The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

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Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

Jeshoots on Unsplash

This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

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According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

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