2 More Cyclical Stocks to Buy on the Dip

Core Insights - The article discusses two cyclical stocks, Digital Realty Trust Inc. and Tyson Foods Inc., which are benefiting from current market trends driven by the AI boom and a recovery in cattle production respectively [1][9] - A total of ten cyclical stocks have been recommended, which have collectively risen by an average of 7%, outperforming the S&P 500 and Nasdaq Composite [2] - Cyclical trends can often counteract broader market downturns, as evidenced by historical examples where specific sectors thrived despite overall market declines [3] Company Summaries - Digital Realty Trust Inc. (DLR): A $50 billion data center company that leases space to AI cloud computing customers, experiencing significant growth due to the AI boom [9] - Tyson Foods Inc. (TSN): A major player in the meatpacking industry, focusing on chicken and beef production, benefiting from a turnaround in cattle production [9] - Douglas Dynamics Inc. (PLOW): The largest producer of snowplow attachments in the U.S., which saw a revenue surge of 56% following the severe winter of 2015, but faced a down-cycle due to dry winters starting in 2020 [7][8][11] - CME Group Inc. (CME) and Cboe Global Markets Inc. (CBOE): Both companies have a strong market position in options and futures, with profits increasing during periods of market volatility [13][14] - Charles Schwab Corp. (SCHW): The largest brokerage firm, which has adapted to market trends and generated significant net interest revenue, expected to benefit from a new trading cycle starting in 2025 [16][20] Market Trends - The article highlights that cyclical stocks are currently positioned to benefit from upward trends in various sectors, including power production and financial exchanges, even as the broader market faces challenges [3] - The return of average winter conditions in the Northeast and recent snowstorms in the South are expected to create a new up-cycle for Douglas Dynamics [10][12] - Analysts predict a 34% increase in earnings per share for Charles Schwab in the current year, driven by declining interest rates and increased trading volumes [20]