Are These Top Cyclical Stocks Worth Watching Now?
While cyclical stocks may not be in the best position in the stock market today, investors may not want to dismiss the sector entirely. For one thing, some of the biggest cyclical firms are taking a breather amidst the current downturn in markets. Accordingly, this would be due to the ongoing rotation out of growth stocks towards value stocks among other defensive spaces. For those uninitiated, cyclical stocks mainly consist of consumer discretionary stocks and industrial stocks. Both of which often grow alongside the economy.
For example, we could look at the likes of Netflix (NASDAQ: NFLX) and Intel (NASDAQ: INTC) now. On one hand, Netflix continues to entertain the masses amidst the current pandemic. If anything, the company has and continues to churn out top-quality content in the process. Following its latest quarterly earnings report yesterday, NFLX stock tumbled. Namely, this would be due to its weak guidance for subscriber growth for the current quarter. Considering that this is in comparison to banner years for Netflix, this conservative estimate is understandable.
On the other hand, chip companies like Intel remain hard at work growing their operations. This would be a response to the global chip shortages. As of today, Intel is currently planning to invest $20 billion towards constructing a new manufacturing facility near Columbus, Ohio. In detail, the firm is looking to build at least two chip fab plants on the 1000-acre site. The likes of which it projects should be operational by 2025. CEO Pat Gelsinger notes that Intel is looking to make it the “largest silicon manufacturing location on the planet.” By and large, there appears to be plenty of activity among cyclical stocks now. Could one of these be top picks in the stock market now?
Best Cyclical Stocks To Consider Ahead Of February 2022
- Schlumberger Limited (NYSE: SLB)
- Robinhood Markets Inc. (NASDAQ: HOOD)
- Walt Disney Company (NYSE: DIS)
Schlumberger is a cyclical company that provides oilfield services. With expertise in more than 120 countries, the company partners with customers to create industry-changing technologies to unlock cleaner and safer access to energy. Notably, it also has a Transition Technologies portfolio to address sustainability challenges and opportunities across the oil and gas industry value chain. The company helps customers address methane emissions and also aid in the electrification of infrastructure.
Today, the company reported stronger than expected fourth-quarter and full-year 2021 earnings. Diving in, revenue for the quarter was $6.22 billion, an increase of 13% year-over-year. Fourth-quarter GAAP earnings per share were $0.42, increasing by 56% compared to a year earlier. The company’s Board of Directors has also approved a quarterly cash dividend of $0.125 per share. Schlumberger CEO Olivier Le Peuch commented, “Strengthening activity, accelerating digital sales, and outstanding free cash flow performance combined to deliver another quarter of remarkable financial results to close the year with great momentum.”
Furthermore, Schlumberger says that the industry macro fundamentals are very favorable for the company as it heads into 2022. This is due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices. It also believes that this will result in a material step-up in the industry capital spending with double-digit growth in international and North American markets. All things considered, is SLB stock worth investing in?
[Read More] 4 Semiconductor Stocks To Watch Right Now
Robinhood Markets Inc.
Robinhood is a financial services company that is known for pioneering commission-free trades of stocks, exchange-traded funds, and also cryptocurrencies. It does this through its mobile app that is used by millions all over the world. On Thursday, the company announced that its Crypto Wallet Beta Program is live.
In detail, it will begin rolling out crypto Wallets to 1,000 customers from the top of its wallets waitlist. By March, it will be expanding the program to another 10,000 customers before rolling out the rest of the waitlist. This is the second major milestone for its Wallets rollout that will enable customers to send and receive their crypto from Robinhood to external crypto wallets. Its end goal would of course be to connect the millions of Robinhood customers to the blockchain ecosystem in a safe and accessible setting.
The company will also be announcing the release of its fourth-quarter and full-year 2021 financial results next Thursday, January 27, 2022. Earlier in the month, the company also welcomed Steve Quirk as Chief Brokerage Officer to oversee its broker-dealers, Robinhood Financials, and Robinhood Securities. As the company’s first-ever Chief Brokerage Officer, Mr. Quirk will help scale its products and services efficiently and safely. He has over 35 years of experience in the brokerage industry to help bring the best of finance and technology for Robinhood users. With that being said, is HOOD stock worth watching?
Walt Disney Company
Disney could also be worth considering among the top cyclical stocks in the market today. For the most part, this would be thanks to its unparalleled portfolio of entertainment assets. The likes of which span some of the biggest IPs in the media world to its library of timeless classics. Not to mention, the company continues to produce unforgettable new content as well. This is evident from its latest musical film Encanto topping music charts.
With the company’s shares trading lower by over 5% year-to-date, would investors be wise to jump on? Well, to highlight, Disney is not sitting idly by despite the current weakness in stocks. As of earlier this week, the company now has a new international content group (ICG). Through this ICG, the company is looking to grow its pipeline of local content alongside its global direct-to-consumer business.
All in all, this would be a solid play by Disney. As things continue to heat up in the video streaming industry, the firm is, accordingly, putting more emphasis on its streaming offerings. As it stands, Disney is already looking to double the number of countries with access to Disney+ to over 160 by 2023. After considering all of this, would DIS stock be a top watch for you?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
nasdaq stocks pandemic blockchain crypto crypto oil
5 Top Consumer Stocks To Watch Right Now
Are these consumer stocks a buy amid the earnings season?
The post 5 Top Consumer Stocks To Watch Right Now appeared first on Stock Market News, Quotes,…
5 Trending Consumer Stocks To Watch In The Stock Market Now
As we tread through the earnings season, consumer stocks could be worth watching in the stock market this week. This would be the case since a number of big consumer names such as Costco (NASDAQ: COST) and Macy’s (NYSE: M) will be posting their financials for the quarter. As such, investors will be keeping an eye on these reports for clues on the strength of consumer spending amid this period of high inflation.
However, despite the soaring prices across the economy, it seems that consumers are surprisingly showing resilience. According to the Commerce Department, retail sales in April outpaced inflation for a fourth straight month. This could suggest that consumers as a whole were not only sustaining their spending, but spending more even after adjusting for inflation. Ultimately, it could be a reassuring sign that consumers are still supporting the economy and helping to diminish the narrative of an incoming recession. With that being said, here are five consumer stocks to check out in the stock market today.
Consumer Stocks To Buy [Or Sell] Right Now
- Nordstrom Inc. (NYSE: JWN)
- The Wendy’s Company (NASDAQ: WEN)
- Foot Locker Inc. (NYSE: FL)
- Tyson Foods Inc. (NYSE: TSN)
- DoorDash Inc. (NYSE: DASH)
Starting off our list of consumer stocks today is Nordstrom. For the most part, it is a fashion retailer of full-line luxury apparel, footwear, accessories, and cosmetics among others. The company operates through multiple retail channels, boutiques, and online as well. As it stands, Nordstrom operates around 100 stores in 32 states in the U.S. and three Canadian provinces.
Yesterday, the company reported its financials for the first quarter of 2022. Starting with revenue, Nordstrom pulled in net sales worth $3.47 million for the quarter. This marks an increase of 18.7% from the same quarter last year. Its Nordstrom banner saw net sales rise by 23.5% year-over-year, exceeding pre-pandemic levels. Next to that, its Nordstrom Rack banner saw a 10.3% increase in net sales from last year. Besides, net earnings were $20 million, with earnings per share of $0.13 for the quarter. Considering Nordstrom’s solid quarter, should you invest in JWN stock?
The Wendy’s Company
Next up, we have The Wendy’s Company. For the most part, it is the holding company for the major fast-food chain, Wendy’s. Being one of the world’s largest hamburger fast-food chains, the company boasts over 6,500 restaurants in the U.S. and 29 other countries. The chain is known for its square hamburgers, sea salt fries, and the Frosty, a form of soft-serve ice cream mixed with starches. WEN stock is rising by over 8% on today’s opening bell.
According to an SEC filing, Wendy’s largest shareholder, Trian Partners, is looking into making a potential deal with the company. Trian said that it is considering a deal to “enhance shareholder value.” Also, the firm adds that this could lead to an acquisition or business combination. In response, Wendy’s stated that it is constantly reviewing strategic priorities and opportunities. It added that the company’s board will carefully review any proposal from Trian. Given this piece of news, will you be watching WEN stock?
Another stock investors could be watching is the shoes and apparel company, Foot Locker. In brief, the company uses its omnichannel capabilities to bridge the digital world and physical stores. As such, it provides buy online and pickup-in-store services, order-in-store, as well as the growing trend of e-commerce. Some of its most notable brands include Eastbay, Footaction, Foot Locker, Champs Sports, and Sidestep. Last week, the company reported its results for the first quarter of the year.
For starters, total sales came in at $2.175 billion, a slight uptick compared to sales of $2.153 billion in the year prior. Next to that, Foot Locker reported a net income of $133 million. Accordingly, adjusted earnings per share came in at $1.60, beating Wall Street’s expectations of $1.54. CEO Richard Johnson added, “Our progress in broadening and enriching our assortment continues to meet our customers’ demand for choice. These efforts helped drive our strong results in the first quarter, which will allow us to more fully participate in the robust growth of our category going forward.” As such, is FL stock one to add to your watchlist?
Tyson Foods is a company that built its name on providing families with wholesome and great-tasting protein products. Its segments include Beef, Pork, Chicken, and Prepared Foods. With some of the fastest-growing portfolio of protein-centric brands, it should not be surprising that TSN stock often comes to mind when investors are looking for the best consumer stocks to buy.
Earlier this month, Tyson Foods provided its fiscal second-quarter financial update. The company’s total sales for the quarter were $13.1 billion, representing an increase of 15.9% compared to the prior year’s quarter. Meanwhile, its GAAP earnings per share climbed to $2.28, up 75% year-over-year. According to Tyson, these financial figures are a reflection of the increasing consumer demand for its brands and products. To top it off, the company was also able to reduce its total debt by approximately $1 billion. Thus, does TSN stock have a spot on your watchlist?
DoorDash is a consumer company that operates an online food ordering and delivery platform. In fact, it is one of the largest delivery companies in the U.S. and enjoys a huge market share. The company connects hundreds of thousands of merchants to over 25 million consumers in the U.S., Canada, Australia, and Japan through its local logistics platform. Accordingly, its platform allows local businesses to thrive in today’s “convenience economy,” as the company puts it.
On May 5, the company reported its first-quarter financials for 2022. Diving in, it posted a revenue of $1.5 billion, growing by 35% year-over-year. This was driven by total orders that grew by 23% year-over-year to $404 million. Along with that, it reported a GAAP gross profit of $662 million, an increase of 34% year-over-year. The company said that it added more consumers than any quarter since Q1 2021, due in part to the growth of its DashPass members. The growth in Monthly Active Users and average order frequency has helped it gain share in the U.S. Food Delivery category this quarter as well. Given DoorDash’s performance for the quarter, should you watch DASH stock?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!recession pandemic dow jones sp 500 nasdaq stocks consumer spending japan canada
Finding Shelter in an Inverse ETF
As the old saying goes, “What goes up must come down.” Indeed, up until the recent selling wave caused by Russia’s war against Ukraine and the continued…
As the old saying goes, “What goes up must come down.”
Indeed, up until the recent selling wave caused by Russia’s war against Ukraine and the continued effects of supply chain disruptions amid the COVID-19 pandemic, tech stocks, including semiconductors, were the darlings of the investment world. That is, it seemed as if the sky-high valuations of some tech stocks were sustainable in an atmosphere of seemingly perpetual growth.
That, of course, was not the case, and the too-good-to-be-true valuations were quickly brought down to earth by the forces of inflation and tight monetary policy. As a result, the tech-heavy Nasdaq entered a free-fall that has not yet found a bottom.
At the same time, that does not mean that we should abandon the sector as a lost cause. One such way to play the sector during its downhill slide is the exchange-traded fund (ETF) Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA: SOXS).
As its title suggests, this is an inverse ETF, meaning that it is built to go up in value when its parent index goes down. Specifically, SOXS provides three times leveraged inverse exposure to a modified market-cap-weighted index of semiconductor companies that trade in American markets by using swap agreements, futures contracts and short positions.
While the index’s holdings are weighted by market capitalization, the fund’s managers cap the weights of the top five securities in the portfolio at 8% each. The weight of the remaining securities is capped at 4% each.
As of May 24, SOXS has been up 0.37% over the past month and up 24.73% for the past three months. It is currently up 60.47% year to date.
Chart courtesy of www.stockcharts.com
The fund has amassed $258.15 million in assets under management and has an expense ratio of 1.01%.
In short, while SOXS does provide an investor with a way to invest in an inverse ETF, this kind of ETF may not be appropriate for all portfolios. Thus, interested investors always should conduct their due diligence and decide whether the fund is suitable for their investing goals.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.nasdaq stocks pandemic covid-19 monetary policy etf russia ukraine
Will Albertsons outperform due to its high return on equity for low beta?
Albertsons Companies Inc. (NYSE:ACI) is trading at $29. The stock has risen 81.25% from the IPO in the last quarter of 2020. In the two years since going…
Albertsons Companies Inc. (NYSE:ACI) is trading at $29. The stock has risen 81.25% from the IPO in the last quarter of 2020. In the two years since going public, Albertsons Companies paid dividends each quarter. The annual dividend currently stands at $0.48, with a yield of 1.64%.
Albertsons is rated high on both value and growth. The company’s heritage has been built over the years since its founding in 1939. Today, the company is the second-largest traditional grocer in the US.
The company went public during a pandemic to fund new growth opportunities. However, it faces the headwinds of inflation and bear markets. Despite pressures, Albertsons will be among the few stocks that will outperform the market.
The ROE stands at 74.48%. This is a fundamental strength that should make investors troop to Albertsons. The EPS is at $2.8 and growing at more than 6.13%. At the valuation of $29, the PE is just about 10. All this for a beta of only 0.3, indicating a low risk.
Albertsons has support at $26.80 and resistance at $36.75
Albertsons has support at $26.80. This week, the stock has been bullish, having gained 7.82%. It is among a handful of stocks that have been braving the bear markets. This analysis projects that the stock will face some resistance at $36.75. However, it would break out at the next earnings release on July 28. If an investor were to take a position today, there is the likelihood of enjoying significant gains by the next earnings call.
Albertsons is an attractive value and growth stock. The share is trading at $29 with a price target of $36 by the end of July. Albertsons is also emerging as an attractive dividend stock.
The post Will Albertsons outperform due to its high return on equity for low beta? appeared first on Invezz.stocks pandemic
Six Commodities Investments to Buy as Putin Wages War on Ukraine
Banks Face Trouble As Credit Cycle Turns
Shanghai: world’s biggest port is returning to normal, but supply chains will get worse before they get better
Another Month Closer To Global Recession
Five Major Challenges Facing The Energy Industry
Recession Proof Industries That Can Protect Your Money
WEF 2022: Terra was offering unsustainable yields; DeFi can support financial inclusion
“Civilization May Not Survive” – George Soros Tells Davos Crowd, Defeat Putin (And Xi) Or Else
Futures Slide As Snap Forecast Steamrolls Rebound Optimism
WEF 2022, May 24: Latest updates from the Cointelegraph Davos team
Government16 hours ago
Six Commodities Investments to Buy as Putin Wages War on Ukraine
Science19 hours ago
Moderna CEO Laments ‘Throwing 30 Million Doses In The Garbage Because Nobody Wants Them’
Economics22 hours ago
Banks Face Trouble As Credit Cycle Turns
Economics17 hours ago
Middle East container ports are the most efficient in the world
Economics22 hours ago
Another Month Closer To Global Recession
Science12 hours ago
Pfizer makes non-profit pledge for low-income nations
Stocks23 hours ago
Skyworks is deep in the oversold zone but is it the right time to buy?
Government23 hours ago
60,000 Migrants Waiting In Mexico Across Border From El Paso, Texas