Group 1: Cyclical Stocks Performance - Eight cyclical stocks introduced last month have surged an average of 8.6% in less than a month, outperforming the S&P 500 by more than ten times and contrasting with negative returns from the Dow Jones Industrial Average (-0.3%) and Nasdaq Composite (-0.1%) [1] - Conservative stocks can yield significant returns when supported by cyclical tailwinds, with short-term seasonal effects boosting energy companies due to rising natural gas prices in winter [3] Group 2: Key Companies and Their Performance - CME Group Inc. (CME) and Cboe Global Markets Inc. (CBOE) hold virtual monopolies in options and futures markets, while Eversource Energy (ES) is a notable New England power utility [2] - Digital Realty Trust Inc. (DLR) reported revenues of 0.51, a fivefold increase, driven by a surge in leasing activity due to capacity constraints in cloud computing [14][15] - Tyson Foods Inc. (TSN) is expected to benefit from a turnaround in U.S. cattle production, with net income projected to rise at a 19% annualized rate through 2027, supported by strong poultry demand [20][22] Group 3: Investment Criteria for Cyclical Stocks - Four key criteria for selecting cyclical firms include achieving an "A" or "B" rating in Louis Navellier's Stock Grader, having protective business moats, demonstrating industry cyclicality, and trading within 30% of their 52-week low [9][10]
2 Roaring Cyclical Stocks to Buy