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four cyclical shopper shares that may be seen on the inventory market proper now

Can
19, 2021

6 min read

This story originally appeared on StockMarket

Are these the best consumer cyclical stocks to buy on the stock market today?

Consumer cyclical stocks have been on the rise lately in the stock market. This should come as no surprise as this category of stocks is highly dependent on the business cycle and economic conditions. It spans industries such as automotive, housing, entertainment, and retail. As the name suggests, consumer spending would determine the company's performance. Consumer spending is influenced by economic factors such as interest rates, inflation, unemployment and wage growth. When the economy recovers, consumer discretionary stocks will be put back on investor radar.

You can see this in the stock performance of companies such as Home Depot Inc. (NYSE: HD) and McDonald & # 39; s Corp. (NYSE: MCD). Both stocks have been on an uptrend since March. On the one hand, the HD share has risen by over 20% in this short period of time. On the other hand, the MCD share has also risen by over 10%. Hence, cyclical stocks are viewed as more volatile than non-cyclical stocks, which tend to be more stable during periods of economic weakness. However, they offer greater growth potential as they can outperform the market in times of economic strength. If that suits your investment appetite, here are four of the best cyclical consumer stocks on the stock market today.

Top Consumer Cyclical Stocks To See Now

Dillard’s, Inc.

To start the list we have retail giant Dillard & # 39; s. The company is a retailer of fashion clothing, cosmetics and home textiles. As of January 30, 2021, the company operated 282 Dillard stores, including 32 clearance centers, and one internet store. The company is focused on delivering style, quality and value to its customers from national and exclusive brand sources.

Source: TD Ameritrade TOS

When you look at DDS stock, it's hard to argue against its excellent performance over the past year. The stock is up a staggering 550% over the period. In fact, the stock price was up nearly 50% just last week. Now let's examine in more detail why this is happening.

Last Friday, Dillard & # 39; s announced its first quarter results. Compared to the same quarter last year, total retail sales increased 73%. The company posted net income of $ 158.2 million versus a net loss of $ 162.0 million. Eventually the company ended up with $ 616 million in cash versus $ 70 million. As vaccinations increased, stimulus money was released and warmer weather came. Dillard's sales could improve from 2019, with momentum continuing throughout the quarter. Given the impressive financial data, would it be worth investing in DDS stocks?

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eBay Inc.

Next we have the global trading company eBay. The company's technology enables sellers worldwide to put their inventory up for sale virtually anytime, anywhere. EBay's platforms can be accessed through a traditional online experience, mobile devices and APIs (Application Programming Interfaces). Hence, consumers could easily access their platform as long as they have access to the internet.

best cyclical consumer stocks (EBAY stock)Source: TD Ameritrade TOS

Earlier this month, the company announced that it would allow sellers in Canada to withdraw in US dollars. Canadian sellers can enroll in this program by invitation and select the withdrawal option that best suits their business needs. This is important because many Canadian eBay sellers do much of their business on eBay.com. The change affects sellers who are registered with Managed Payments.

In addition, eBay announced the possibility of accepting cryptocurrency as a means of payment in the future. The company is clearly aware of newer payment methods and is taking steps to keep up with the trend. Additionally, eBay will allow consumers to purchase non-fungible tokens (NFTs) on its broad online marketplace. This reflects an expansion in eBay's digital collectibles business, in line with the rise in popularity of NFTs this year. In this sense, would the EBAY share be a good investment?

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The Children's Place Inc.

The Children’s Place is a pure specialist retailer for children's clothing. The company offers clothing, shoes, accessories and other items for children. It designs, contracts to manufacture and licenses the sale of goods under brand names such as The Children’s Place, Place, Baby Place and Gymboree. The PLCE share has been on an upward trend since the beginning of the year. It has risen by over 75% in this period and shows only a very slight weakness. The stock received another boost on Monday, rising 15.96%.

top cyclical consumer stocks (PLCE stock)Source: TD Ameritrade TOS

The latest increase is likely due to two Wall Street firms upgrading the children's clothing retailer ahead of their earnings report later this week. Jim Chartier, an analyst at Monness Crespi Hardt, switched the retailer from neutral to buy and set a price target of $ 93 per share for the stock.

"Given the far better than expected consumer spending and conservative forecast, we are raising our EPS estimate for the first quarter by more than $ 1 above consensus and see the potential for more upside," said Chartier. In the meantime, Wedbush analyst Jen Redding has also raised Children's Place from neutral to an outperform rating for similar bullish reasons. However, she sees the potential for the clothing retailer to nearly double its value. She set a price target of $ 150 per share. So do you share the same sentiment as these analysts towards PLCE stock?

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Harley-Davidson Inc.

Last on the list is the infamous Harley-Davidson. The company operates in two segments: motorcycles and related products (motorcycles) and financial services. As you can imagine, the Motorcycles segment designs, manufactures and sells street wholesale Harley-Davidson motorcycles.

Watchable Consumer Cyclical Stocks (HOG Stock)Source: TD Ameritrade TOS

On the flip side, the financial services segment offers Harley-Davidson dealers and their retail customers wholesale and retail financing, as well as insurance-related programs. The value of the HOG share more than doubled in the past year. In fact, it recently hit a three-year high. Now you are sure to be curious what the driving force is.

This results from the decision of the European Union to suspend a planned increase in retaliatory tariffs for their motorcycles under a partial trade agreement with the USA. This is encouragement for the company as the duty will not go from 31% to 56%. This is the first step in the right direction in favor of the company. Last week, Harley-Davidson also announced the launch of LiveWire as a standalone, all-electric brand. The new brand will have its own electric drive engineering team, but will also leverage Harley's existing engineering and manufacturing resources. All in all, would this be a good time to buy HOG stock?

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