What are examples of cyclical stocks?

Cyclical stocks are generally concentrated in specific industries. Examples of cyclical industries include restaurants and hospitality, travel and airlines, car manufacturers, construction, real estate, furniture, or luxury retail.

Is investing in cyclical stocks a risk?

It's this kind of volatility that makes investing in cyclical stocks a risk — certainly more so than staying with stalwart equities, like blue-chip stocks, whose returns remain relatively stable over time. The opposite of a cyclical stock is a non-cyclical or defensive stock.

What are durable cyclical stocks?

Durable cyclicals include physical consumer goods that have long useful lives (e.g., vehicles). Non-durable cyclicals have shorter useful lives or are consumed quickly (e.g., clothing and prepared foods). Each recession is different. An economic downturn might not affect all cyclical stocks the same way.

What is a Non-Consumer Cyclical stock?

A non-consumer cyclical would be a company that sells to businesses, governments, or large organizations and which is also sensitive to the state of the economy. A consumer cyclical would be a cyclical stock that markets to individuals or households. What Types of Stocks Are Non-Cyclicals?