Best Cyclical Stocks to Consider for Investment in Late 2020 or Early 2021
Investing in cyclical stocks can be a strategic move, especially in a volatile market. These stocks are influenced by the economic cycle and can offer significant returns during economic expansions, but may face challenges during downturns. This article will explore some of the best cyclical stocks to consider for investment in late 2020 or early 2021, along with insights from various sources.
Introduction to Cyclical Stocks
Cyclical stocks are those that are sensitive to business cycle fluctuations. They tend to perform well during economic expansions due to higher levels of production and heightened consumer spending, while they typically underperform during recessions. Identifying these stocks at the right time can be a boon for smart investors.
Best Cyclical Stocks to Invest In
Several stocks have shown potential for growth in late 2020 or early 2021. Here are some of the top cyclical stocks to consider:
IEX
IEX Group is an alternative financial market that seeks to provide a fair and transparent trading environment. This stock entered the market in 2020 and has since shown promise. With its unique business model, IEX offers opportunities for growth, especially as more investors seek fair trading practices.
EID Parry
EID Parry is a diversified India-based company involved in diverse sectors including sugar, textile, and pharmaceuticals. The stock is expected to benefit from the economic rebound in India as the country emerges from the pandemic. Its diversification across sectors could provide a cushion against the economic volatility.
Raymond
Raymond, a leading Indian fashion and lifestyle goods company, is a strong contender for cyclical stocks. With consumer spending expected to increase as the economy recovers, Raymond stands to benefit significantly. Its positioning in the consumer goods sector positions it well for a robust recovery.
Dhanuka Agro
Dhanuka Agro is a leader in the agribusiness sector in India. As the agricultural sector recovers from the pandemic, Dhanuka Agro is likely to see growth. This stock is an excellent choice for investors looking to ride the wave of a recovering agricultural market.
Inkritel
Inkritel, an India-based telecom services provider, is poised for recovery as the telecommunications sector gains traction. The ongoing digital transformation and increased demand for mobile services make this stock a compelling investment option for those looking to capitalize on the tech industry’s resilience.
Additional Recommendations
In addition to the mentioned stocks, here are a few more recommendations:
Balrampur Chini Ltd.
Balrampur Chini Ltd. is a leading player in the sugar industry. The company is expected to perform well as the agricultural sector recovers, driven by increased sugarcane production.
Raymond
Raymond, along with other previously mentioned cyclical stocks, is worth considering for its robust position in the consumer goods sector.
Dhampur Sugars
Dhampur Sugars is another sugar-related stock that could benefit from the economic recovery and increased sugarcane production.
Conclusion
Investing in cyclical stocks requires careful analysis and a strategic approach. While the stocks mentioned are currently positioned well, it is important to conduct your own due diligence (DYOR). The recent performance of the stock market suggests a continued interest in cyclical stocks, making them a noteworthy investment option.
Disclaimer
While these recommendations are based on current market trends, no advice is being given. Always conduct your own research and consult with a financial advisor before making investment decisions. Investing involves risk, and past performance is not indicative of future results.