10 Best Cyclical Stocks To Buy in 2022

Published on October 6, 2022 at 9:10 am by Hamna Asim in Hedge Funds, News

In this article, we discuss 10 best cyclical stocks to buy in 2022. If you want to see more stocks in this selection, check out 5 Best Cyclical Stocks To Buy in 2022.

The performance of cyclical stocks is largely tied to economic recovery. Amid global inflation, threats of recession, and rampant rate hikes, these equities might be trading at a significant discount as investors ignore the potential for global economic rebound.

In late July, Courtney Garcia, Payne Capital Market senior wealth advisor, told CNBC that investors should monitor the stock market for the next 6 to 12 months, rather than worry about what happens the next day or week. She believes that inflation will eventually ease, be it at the end of 2022 or next year, and she advised investors to maintain positions in cyclical stocks, in addition to inflation hedges like energy and commodities for a balanced portfolio.

As of mid-September, analysts at JPMorgan Chase believe that the US might be able to achieve a soft landing, as latest data indicates rebounding growth and bolstered consumer confidence. Markets can rally on the back of government capital stimulus in China and energy transition plans in Europe. Investors in the United States believe that inflation may have peaked, and they look forward to a stock market recovery. This is a positive catalyst for cyclical stocks, as risk appetite in the market will also increase. Some of the best cyclical stocks to buy in 2022 include Lowe’s Companies, Inc. (NYSE:LOW), Starbucks Corporation (NASDAQ:SBUX), and Airbnb, Inc. (NASDAQ:ABNB).

Our Methodology

We carried out a detailed assessment of cyclical industries, including restaurants, hotels, home improvement, high-end fashion retailers, and automobile manufacturers. We selected the following stocks based on positive analyst coverage, solid demand, and strong hedge fund sentiment.

We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.

Best Cyclical Stocks To Buy in 2022

10. Wynn Resorts, Limited (NASDAQ:WYNN)

Number of Hedge Fund Holders: 26

Wynn Resorts, Limited (NASDAQ:WYNN) was founded in 2002 and is based in Las Vegas, Nevada. The company owns and operates integrated resorts, with casinos, private gaming salons, luxury hotel towers, health clubs, spas, and pools. The stock has climbed over 20% in the last month as of October 4, and this is primarily attributable to positive news related to relaxation of border restrictions in China.

On September 26, Jefferies analyst David Katz upgraded Wynn Resorts, Limited (NASDAQ:WYNN) to Buy from Hold with a price target of $75, up from $62, in light of the Macau government announcing the resumption of visitation access from Mainland China through tours and e-visas by the end of October to early November, calling it “the moment we’ve been waiting for.”

According to Insider Monkey’s data, 26 hedge funds were long Wynn Resorts, Limited (NASDAQ:WYNN) at the end of the second quarter of 2022, compared to 32 funds in the last quarter. Israel Englander’s Millennium Management is a notable position holder in the company, with 360,232 shares worth $20.5 million.

Like Lowe’s Companies, Inc. (NYSE:LOW), Starbucks Corporation (NASDAQ:SBUX), and Airbnb, Inc. (NASDAQ:ABNB), Wynn Resorts, Limited (NASDAQ:WYNN) is one of the best cyclical stocks to buy in 2022.

In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Wynn Resorts, Limited (NASDAQ:WYNN) was one of them. Here is what the fund said:

“In the most recent quarter, we exited the Fund’s holdings in Wynn Resorts, Limited (NASDAQ:WYNN) due to: (i) ongoing COVID-19-related travel restrictions in China, Macau, and Singapore; and (ii) the Macau government’s announcement to tighten its casino regulatory oversight.”

9. V.F. Corporation (NYSE:VFC)

Number of Hedge Fund Holders: 29

V.F. Corporation (NYSE:VFC) is a Colorado-based company engaged in the design, marketing, and distribution of branded lifestyle apparel, footwear, and related products in the Americas, Europe, and the Asia Pacific. V.F. Corporation (NYSE:VFC) distributed a $0.50 per share quarterly dividend on September 30. The company delivers a dividend yield of 6.29% as of October 4.

Deutsche Bank analyst Gabriella Carbone on September 30 maintained a Buy rating on V.F. Corporation (NYSE:VFC) but lowered the price target on the shares to $43 from $56. While the analyst is encouraged by V.F. Corporation (NYSE:VFC)’s long-term outlook and commitment to deliver resilient shareholder returns, she is cautious around short-term patterns, especially at the Vans brand.

According to Insider Monkey’s second quarter database, 29 hedge funds held stakes worth $316.30 million in V.F. Corporation (NYSE:VFC), compared to 28 funds in the earlier quarter worth $330.35 million. Ric Dillon’s Diamond Hill Capital is the biggest stakeholder of the company, with 6.90 million shares valued at approximately $305 million.

Here is what Diamond Hill All Cap Select Fund Concentrated Fund has to say about V.F. Corporation (NYSE:VFC) in its Q1 2022 investor letter:

“Apparel and footwear company V.F. Corporation underperformed due to the longer-than-expected recovery for its Vans brand, elevated freight costs dampening gross margin, and its modest exposure to the slowdown in China. The company’s remaining brands are performing well. Although consolidated results have been choppy, we believe management is making the right strategic decisions for future profitable growth.”

8. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Fund Holders: 32

Darden Restaurants, Inc. (NYSE:DRI) owns and operates full-service restaurants in the United States and Canada. The company has several restaurant brands including Eddie V’s, The Capital Grille, Olive Garden Italian Restaurant, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House, and Cheddar’s Scratch Kitchen. On September 21, Darden Restaurants, Inc. (NYSE:DRI) declared a $1.21 per share quarterly dividend. The dividend is distributable on November 1, to shareholders of record on October 10. Darden Restaurants, Inc. (NYSE:DRI) delivers a dividend yield of 3.69% as of October 4. It is one of the best cyclical stocks for 2022.

Truist analyst Jake Bartlett on September 23 raised the price target on Darden Restaurants, Inc. (NYSE:DRI) to $142 from $136 and kept a Buy rating on the shares after its FQ1 results. The earnings and the latest “strong improvement” in trends show that restaurant demand is resilient despite macro pressures, the analyst told investors. He further stated that while Darden Restaurants, Inc. (NYSE:DRI) observed softer demand from lower income consumers, it was “not severe”, and the management also assured about solid demand from other income levels.

According to Insider Monkey’s data, 32 hedge funds were long Darden Restaurants, Inc. (NYSE:DRI) at the end of June 2022, with collective stakes worth $447.4 million, compared to 32 funds in the last quarter worth $241.8 million. D E Shaw is a significant position holder in the company, with 398,773 shares valued at $45 million.

7. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 39

Chipotle Mexican Grill, Inc. (NYSE:CMG) is a California-based company that owns and operates Chipotle Mexican Grill restaurants. The company has more than 3,000 restaurants in the United States, Canada, the United Kingdom, and Europe. On September 27, Chipotle Mexican Grill, Inc. (NYSE:CMG) announced some new tech initiatives it is employing to improve its employee and customer experience. These include AI and machine learning to monitor ingredient levels in real time, autonomous cooking assistants, and advanced location-based tech to enhance app functionality.

On September 22, Stephens analyst Joshua Long initiated coverage of Chipotle Mexican Grill, Inc. (NYSE:CMG) with an Overweight rating and a $1,900 price target. The analyst views Chipotle Mexican Grill, Inc. (NYSE:CMG) as a “best-in-class operator” within the fast casual dining segment that is positioned advantageously to benefit from consumer demand for its brand experience. The company’s growth story is “anchored by the compelling unit economics and continued growth of its digitally-enabled store base,” the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey, 39 funds were long Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of Q2 2022, compared to 38 funds in the earlier quarter. Bill Ackman’s Pershing Square is the leading position holder in the company, with 1.10 million shares valued at $1.4 billion.

Here is what Pershing Square Holdings specifically said about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q2 2022 investor letter:

“Chipotle Mexican Grill, Inc. (NYSE:CMG) continued its impressive performance in 2022 driven by the ongoing recovery of in-restaurant sales, price increases to cover cost inflation, and successful menu innovation including pollo asado. During the second quarter, Chipotle continued to lead the restaurant industry in growth for both same-store sales (“SSS”) and new restaurants, with SSS growing 10% year-over-year or 30% on a three-year cumulative basis. On-premise sales grew 36% as consumers resumed pre-pandemic routines, while digital sales declined only 3%, continuing their persistence despite the growth of conventional sales. Chipotle remains on track to grow its store base by approximately 8% this year with a longer-term annual store growth aspiration of nearly 10% once current headwinds around construction, permitting, and supplies ease.

We believe Chipotle is one of the best-positioned consumer companies for the current inflationary world. Given significant inflation in food and labor costs, management has planned a menu price increase of approximately 4% for August following a similarly-sized price increase in March. The company has tremendous pricing power due to the superb quality of its food which is priced at a discount to many competitors with inferior offerings, marketing focused on food quality and freshness rather than cost, and a customer base that over-indexes to higher-income consumers, some of whom are trading down from pricier alternatives.

Chipotle’s economic model remains firmly intact, with restaurant-level margins in excess of 25% in the second quarter, up 0.8% year-over-year, and a consistent level of profitability expected for the current quarter. The company is debt-free and generates nearly all its sales in the U.S., insulating its earnings from the foreign currency headwinds facing many other large consumer companies. …” (Click here to read the full text)

6. Yum! Brands, Inc. (NYSE:YUM)

Number of Hedge Fund Holders: 40

Next on our list of the best cyclical stocks is Yum! Brands, Inc. (NYSE:YUM), an operator and franchisor of quick service restaurants worldwide. The company’s restaurants include KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. On September 12, Yum! Brands, Inc. (NYSE:YUM) announced that its board approved a new $2 billion share repurchase authorization through June 30, 2024. The new program will be effective upon the conclusion of the last authorization, of which $236 million remained available as of September 12.

Bernstein analyst Danilo Gargiulo on September 7 initiated coverage of Yum! Brands, Inc. (NYSE:YUM) with an Outperform rating and a $144 price target. The analyst expects KFC’s cumulative five-year sales from international markets excluding China to drive sales equivalent to the size of China and also likes Taco Bell’s brand, digital engagement, and attraction for Gen-Z, while he is on the sidelines about Pizza Hut’s outlook. However, he noted that Pizza Hut’s “transformation into a more LSR-ready concept leaves room for upside.”

Among the hedge funds tracked by Insider Monkey, 40 funds were bullish on Yum! Brands, Inc. (NYSE:YUM) at the end of Q2 2022, compared to 45 funds in the last quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 2.6 million shares worth $297 million.

In addition to Lowe’s Companies, Inc. (NYSE:LOW), Starbucks Corporation (NASDAQ:SBUX), and Airbnb, Inc. (NASDAQ:ABNB), elite hedge funds are piling into Yum! Brands, Inc. (NYSE:YUM) for exposure to cyclicals.

Click to continue reading and see 5 Best Cyclical Stocks To Buy in 2022.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up

10 Best Cyclical Stocks To Buy in 2022

Published on October 6, 2022 at 9:10 am by Hamna Asim in Hedge Funds, News

Best Cyclical Stocks To Buy in 2022

10. Wynn Resorts, Limited (NASDAQ:WYNN)

9. V.F. Corporation (NYSE:VFC)

8. Darden Restaurants, Inc. (NYSE:DRI)

7. Chipotle Mexican Grill, Inc. (NYSE:CMG)

6. Yum! Brands, Inc. (NYSE:YUM)

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Premium

Log In

Sign Up

10 Best Cyclical Stocks To Buy in 2022

Published on October 6, 2022 at 9:10 am by Hamna Asim in Hedge Funds, News

Share

Best Cyclical Stocks To Buy in 2022

10. Wynn Resorts, Limited (NASDAQ:WYNN)

9. V.F. Corporation (NYSE:VFC)

8. Darden Restaurants, Inc. (NYSE:DRI)

7. Chipotle Mexican Grill, Inc. (NYSE:CMG)

6. Yum! Brands, Inc. (NYSE:YUM)

Share

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff