What is a cyclical stock?

A cyclical stock is one whose underlying business generally follows the economic cycle of expansion and recession. Cyclical businesses perform well during economic expansions but typically experience significantly declining sales and profits during recessions and other challenging economic times. Did You Know...

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.

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.