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2 More Cyclical Stocks to Buy on the Dip

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Last week, I (Tom Yeung) introduced you to two cyclical stocks to buy immediately.

These promising firms couldn’t have been more different, at least from a business perspective:

  1. Digital Realty Trust Inc. (DLR) is a $50 billion data center company leasing millions of square feet to AI cloud computing customers.

  2. Tyson Foods Inc. (TSN) packs chicken and beef into grocery store containers.

Yet, these two companies are both riding cyclical waves. The AI Boom is driving Digital Realty’s business to new heights, while a turnaround in cattle production is powering Tyson to a strong recovery.

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That pair joins another eight recommendations from January that also focused on riding cyclical trends. These 10 high-quality firms have now risen 7% on average – outperforming the weighted S&P 500 return (-3%) and trouncing the -6% decline in the Nasdaq Composite over the same period.

That’s because cyclical effects can often overwhelm broader market negativity. Commodity prices surged during the 2008 financial crisis while everything else was plummeting… airline stocks boomed in the mid-2010s as oil prices collapsed… and chipmaking stocks surged in 2020 on a global shortage despite the broader Covid-19 selloff.

Today, the cycle is pointing upward for power-producing companies… financial exchanges… meatpackers… and more. That’s happening even as the rest of the market goes in reverse.

Nevertheless, these wonderful up-cycles are incredibly short to Keith Kaplan, CEO of TradeSmith. He’s helping his software firm’s investor customers find cycles across decades… if not longer.

That’s why I encourage you to watch Keith’s latest presentation while it’s still available. During this free broadcast, he reveals what he calls “the pattern,” a cyclical effect that’s only happened every 49.5 years on average.

When this patten appears, Keith says, it can send a specific class of stocks soaring. In fact, back-tests show the last time this pattern appeared under these conditions, it led to historic gains over the long haul, such as 9,731% from a leading software company… and 28,894% from a computer-driven hardware firm.

For long-term investors, it’s an event you don’t want to miss.

Click here to watch that presentation.

And in the meantime, I’d like to introduce two final cyclical stocks to buy this year.

Let’s Talk About the Weather 

In 2015, New England faced “Snowmageddon,” an epic winter season that dumped nearly 8 feet of snow in Boston alone. The city would spend over $40 million responding to the storms – more than twice its annual snow-removal budget. One massive snow pile in South Boston’s Seaport district took until mid-July to fully melt.