What are cyclic stocks?

Cyclical stocks are affected by macroeconomic changes. Their returns follow the cycles of an economy. Cyclical stocks are generally the opposite of defensive stocks. Cyclical stocks include discretionary companies, such as Starbucks or Nike. Defensive stocks are staples, such as Campbell Soup.

What are the best cyclical stocks to buy now?

Two are popular technology-related companies, Amazon and Tesla. To come up with our list of the best cyclical stocks to buy now, we screened for: Consumer cyclical stocks that earn narrow or wide Morningstar Economic Moat Ratings.

What companies have cyclical stocks?

Companies with cyclical stocks include car manufacturers, airlines, furniture retailers, clothing stores, hotels, and restaurants. Consumers can afford to buy new cars, upgrade their homes, shop, and travel when the economy is doing well. These discretionary expenses are some of the first things consumers cut when an economy does poorly.