10 Best Consumer Cyclical Stocks to Buy Now

In this article, we will take a look at the 10 Best Consumer Cyclical Stocks to Buy Now.

Companies in the consumer cyclical sector produce products and services that are considered non-essential, so people are more inclined to buy them when they have extra money or are comfortable with their financial status. As a result, these companies, subject to consumer discretion, often face cyclical pressures.

Following a peak in April, concerns around a recession seem to have significantly cooled. After a 90-day tariff break and trade talks with China were announced, the probability of a recession dropped from 66% to 28% on prediction market Polymarket. That said, a 28% likelihood of recession is still higher than the long-term average of about 15%, which continues to worry some Wall Street traders.

According to a Commerce Department report released on June 27, consumer prices rose slightly in May, and the annual inflation rate moved further away from the Federal Reserve’s goal. Core PCE, excluding food and energy, reported readings of 0.2% and 2.7%, respectively, which were lower than the projections of 0.1% and 2.6%.

In addition to the inflation figures, there were indications of continued declines in consumer income and spending. In comparison to the projection of a 0.1% increase, spending decreased by 0.1% for the month. However, the markets did not react much to the data as Treasury yields increased and stock market futures showed a favorable start on Wall Street.

Our Methodology

To compile our list of the best consumer cyclical stocks to buy, we started with a list of U.S.-listed companies in the industry with strong fundamentals. We used the finviz screener to get companies operating in the cyclicals space. We then ranked them according to the number of hedge funds that held stakes in them as of the first quarter of 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10. Smurfit Westrock Plc (NYSE:SW)

Number of Hedge Fund Holders: 37

Smurfit WestRock Plc (NYSE:WRK) is one of the best consumer cyclical stocks to buy. Jefferies raised its price target for Smurfit WestRock Plc (NYSE:WRK) from $44 to $55 on June 16 and upgraded the firm to Buy, citing increased confidence in the company’s commercial execution and integration of WestRock.

According to Jefferies’ 2025 projections, Smurfit WestRock Plc (NYSE:WRK) is trading at a substantial discount to some of its competitors. As Smurfit meets synergy goals and increases investor transparency, the brokerage believes this difference will begin to close. Alongside an additional $400 million in cost reductions, the company’s management anticipates at least $400 million in commercial synergies from its North American box business.

Moreover, Smurfit WestRock Plc (NYSE:WRK) has moved away from WRK’s volume-first philosophy under the new leadership, assigning profit-and-loss duties to box plant managers and linking compensation to free cash flow and EBITDA.

Smurfit Westrock Plc (NYSE:SW) is a global leader in the paper packaging sector, manufacturing a variety of products, including retail displays and shipping boxes. The company operates box facilities and paper mills in 40 countries, giving it a significant global presence.