In this article, we will take a look at the 15 Best Cyclical Stocks to Buy Now.
The Federal Reserve’s main inflation indicator, the personal consumption expenditures price index, increased by a seasonally adjusted 0.1% for the month, bringing the annual inflation rate to 2.3%, according to a Commerce Department report released on June 27.
The Fed sets its inflation target at 2%, a level that hasn’t been seen since early 2021. 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.
“This morning’s news was consistent with other reports showing the economy gradually losing momentum in the second quarter, ahead of the brunt of tariff increases expected to wash ashore during the summer and early fall.”
The report came at a time where the Fed is currently weighing its next interest rate decision. Schlossberg added that while he still views such talk as “premature,” the report helps “keep hopes alive” for a rate drop in July.
Additionally, Wall Street continued its upward trend on June 27, pushing the S&P 500 and Nasdaq to record closing highs as investor risk appetite was stoked by trade deal hopes. Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana, added that “This market’s been pretty resilient,” and that “Investors are riding momentum and looking for breakouts.”
With that in mind, lets take a look at the best cyclical stocks to buy now.
Our Methodology
To compile our list of the best cyclical stocks to buy, we started with a list of U.S.-listed companies in the industry with strong fundamentals. 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).
15. MakeMyTrip Limited (NASDAQ:MMYT)
Number of Hedge Fund Holders: 26
MakeMyTrip Limited (NASDAQ:MMYT) ranks among the best cyclical stocks to buy now. On June 24, Macquarie upgraded the shares of MakeMyTrip Limited (NASDAQ:MMYT) from Neutral to Outperform, citing enhanced risk-reward dynamics in the wake of a recent share-price fall.
The upgrade followed MakeMyTrip’s announcement of a $3.1 billion capital increase to lower Trip.com’s stake. With a conversion price of $121.50, the capital consists of $1.43 billion in zero-coupon convertible notes due in 2030 and a primary share issuance of 18.4 million shares at $90 each.
By repurchasing the majority of Trip.com’s Class B shares, the company will reduce its ownership from 45.3% to roughly 17% and reduce its representation on the board from five to two seats. Macquarie analysts predict that the repurchase will result in a 12% decrease in MakeMyTrip’s basic share count, which will be compensated for by newly issued shares.
Online travel company MakeMyTrip Limited (NASDAQ:MMYT) offers a range of services and products, such as booking airline and bus tickets, vacation packages, hotel reservations, foreign exchange, and visa processing.
14. Autoliv, Inc. (NYSE:ALV)
Number of Hedge Fund Holders: 30
Autoliv, Inc. (NYSE:ALV) ranks among the best cyclical stocks to buy now. With an Outperform rating and a $133 price target, RBC Capital Markets began coverage of Autoliv, Inc. (NYSE:ALV) on June 25, stating that the company holds a dominant position in the automobile safety market and that the complexity and regulatory nature of its products limit competition.
With over 45% of the global airbag and seat-belt market, Autoliv, Inc. (NYSE:ALV) is far ahead of its closest rival, ZF, which has approximately 20% and intends to leave the market. Additionally, Autoliv is venturing into new areas, such as motorcycles and commercial vehicles, with the goal of achieving incremental growth of 22% by 2030.
According to RBC, Autoliv’s business is less vulnerable to fluctuations in the adoption of electric vehicles since its primary products, which include steering wheels, seatbelts, and airbags, are independent of powertrain type. Additionally, the firm downplayed tariff risks by claiming that the company has little direct exposure and that vehicle production predictions have improved of late.
With its headquarters located in Stockholm, Sweden, Autoliv is a Swedish-American automobile safety supplier that was incorporated as Autoliv, Inc. (NYSE:ALV) in Delaware, USA. It is the largest supplier of vehicle safety equipment in the world, manufacturing steering wheels, seatbelts, and airbags for automakers.
13. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 40
Amcor Plc. (NYSE:AMCR) ranks among the best cyclical stocks to buy now. On June 26, Wells Fargo began coverage of Amcor Plc. (NYSE:AMCR) with a $10 price target and an Overweight rating, stating that the recent merger of Amcor and Berry Global had created “a global packaging powerhouse with unmatched scale and innovation leadership.”
Wells Fargo expects that over the next two years following the merger, Amcor Plc. (NYSE:AMCR)’s earnings growth will be mostly driven by synergies, positioning the company as a leader in the packaging sector.
Additionally, the firm emphasized that higher free cash flow might offer long-term flexibility between possible bolt-on acquisitions for the packaging company and improved shareholder returns.
Amcor plc (NYSE:AMCR) is a holding company that offers consumer packing services. Its operations comprise of the Flexibles and Rigid Packaging segments. Rigid Packaging produces rigid plastic containers and other items for worldwide distribution, whereas Flexibles oversees the creation and distribution of flexible packaging.
12. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 44
DICK’S Sporting Goods, Inc. (NYSE:DKS) ranks among the best cyclical stocks to buy now. On June 27, despite market concerns, UBS maintained its Buy rating and $225 price target on DICK’S Sporting Goods, Inc. (NYSE:DKS), noting substantial upside potential.
The investment firm believes the market has priced in too much downside risk for the sporting goods retailer, especially with regard to its acquisition of Foot Locker, which UBS admits raises uncertainty but also presents opportunities for value creation that aren’t fully reflected in the share price at the moment.
Based on a cautious multiple of 13x compared to DICK’s five-year mean forward price-to-earnings ratio of 12x, and combined company earnings per share of roughly $19 in 2027, UBS estimates around 31% upside potential from the current $196 share price.
Founded in 1948, DICK’S Sporting Goods, Inc. (NYSE:DKS) is a Pennsylvania-based sporting goods retailer that offers golf equipment, hunting and fishing gear, fitness equipment, and athletic clothing and accessories.
11. Dutch Bros Inc. (NYSE:BROS)
Number of Hedge Fund Holders: 47
Dutch Bros Inc. (NYSE:BROS) ranks among the best cyclical stocks to buy now. On June 26, Goldman Sachs began coverage of Dutch Bros Inc. (NYSE:BROS) with a $75 price target and a neutral rating, suggesting a 9% upside potential.
According to Goldman Sachs, Dutch Bros Inc. (NYSE:BROS) possesses strong growth potential and an appealing return profile, which are bolstered by initiatives for food rollout, mobile order capabilities, a distinctive menu, and opportunities for unit expansion with a more balanced development plan.
The investment bank believes these elements could propel Dutch Bros’ goal of over 20% overall revenue growth, roughly 30% company-operated shop contribution margin, and more than 20% EBITDA growth, with projections indicating a 24% revenue CAGR and a 25% EBITDA CAGR from 2024 to 2027
Dutch Bros Inc. (NYSE:BROS) is a drive-thru coffee shop operator with a focus on handcrafted drinks. The company offers a variety of artisan beverages, including tea, lemonade, smoothies, cold brew coffee, hot and cold espresso-based drinks, and energy drinks.
10. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 48
Lululemon Athletica Inc. (NASDAQ:LULU) ranks among the best cyclical stocks to buy now. On June 23, TD Cowen kept its buy rating and $321 price target on Lululemon Athletica Inc. (NASDAQ:LULU) despite several market worries around the athletic apparel retailer.
Lululemon Athletica Inc. (NASDAQ:LULU) faced a number of difficulties, according to the firm, including declining traffic in the United States, slowing growth in China, rising tariffs on Vietnam, growing rivalry in the Americas, and concerns about the return on investment from increasing retail square footage.
According to TD Cowen, Lululemon’s management remains optimistic about the company’s current inventory composition, markdown strategy, and impending women’s product innovation pipeline for the fall and holiday seasons. Additionally, for fiscal year 2026, the company has stated that it is confident in its capacity to mitigate the effect of current tariffs on its operating margin.
Lululemon Athletica Inc. (NASDAQ:LULU), a Canadian athleisure company founded in 1998, designs, develops, and distributes a variety of sportswear, accessories, and footwear.
9. Las Vegas Sands Corp (NYSE:LVS)
Number of Hedge Fund Holders: 51
Las Vegas Sands Corp. (NYSE:LVS) ranks among the best cyclical stocks to buy now. On June 23, JPMorgan set a price target of $47 and began coverage of Las Vegas Sands Corp. (NYSE:LVS) with a Neutral rating. With a valuation nine times the casino operator’s projected 2026 enterprise value to EBITDA ratio, the investment bank’s year-end 2026 price target represents a substantial discount to Las Vegas Sands’ historical average.
Although the massive 4x discount to the company’s historical average seems “enticing,” JPMorgan said it is still apprehensive due to Las Vegas Sands’ poor performance in the already troubled Macau market.
If Las Vegas Sands Corp. (NYSE:LVS) regains market share in Macau or if industry gross gaming revenue picks up speed again, JPMorgan said it might take a more optimistic view of the company.
Las Vegas Sands Corp. (NYSE:LVS) is a casino operator with a primary focus on the Macau market. The company primarily targets the Asian market with its five casinos in Macau and Marina Bay Sands in Singapore.
8. Amer Sports, Inc. (NYSE:AS)
Number of Hedge Fund Holders: 52
Amer Sports Inc. (NYSE:AS) ranks among the best cyclical stocks to buy now. On June 26, Piper Sandler began covering Amer Sports Inc. (NYSE:AS) with a price target of $45 and an Overweight rating. Amer Sports was cited by the firm as a “unique portfolio company” with strong performance in each of its three primary business segments: Ball & Racquet, Outdoor Performance, and Technical Apparel.
According to Piper Sandler, Amer Sports, Inc. (NYSE:AS) has seen consistent currency sales growth of over 20% over the last two years, with the latest two quarters seeing an acceleration, particularly from the Salomon and Wilson brands, which the firm characterized as “rare in the Consumer space.”
Given the momentum in both top and bottom line performance, the firm considers the company’s long-term algorithm, which is based on EBIT margin improvement of 30-70 basis points annually and sales growth in the low to mid-teens, to be cautious.
Based in Helsinki, Finland, Amer Sports, Inc. (NYSE:AS) is a multinational athletic goods corporation. The company owns a portfolio of brands, including Atomic, Arc’teryx, Armada, Enve Composites, Peak Performance, Salomon, and Wilson.
7. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 55
Carnival Corporation & plc (NYSE:CCL) ranks among the best cyclical stocks to buy now. On June 27, UBS maintained its Buy rating on Carnival Corporation & plc (NYSE:CCL) while raising its price target to $33 from $30.
The firm listed a number of possible stimuli for Carnival Corporation & plc (NYSE:CCL), such as the opportunity to eliminate tax risk by this week, Celebration Key’s July opening, and outperforming yield growth for the fiscal year. According to UBS, a portion of the difference between cruise prices and hotel room rates is caused by declining commissions and rising onboard expenditure, thus indicating a greater potential for cruise yield growth than current figures show.
The firm also stated that Carnival Corporation & plc (NYSE:CCL) would reveal new long-term goals in the second quarter of 2026 and will likely start paying dividends the same year.
Carnival Corporation & plc (NYSE:CCL) operates cruise ships that offer vacation experiences to destinations in North America, the UK, Germany, and other regions. The company’s segments include Cruise Support, Europe Cruise Operations, Tour and Other, and NAA Cruise Operations.
6. Chewy, Inc. (NYSE:CHWY)
Number of Hedge Fund Holders: 55
Chewy, Inc. (NYSE:CHWY) ranks among the best cyclical stocks to buy now. On June 25, BofA maintained a Buy rating on Chewy, Inc. (NYSE:CHWY) with a $49 price target as the company gains market share in the pet retail industry and remains in a strong position to benefit from the continued trend toward online shopping.
Spending data from BofA’s combined credit and debit card metrics revealed that US pet retail sales stabilized in May, with year-over-year trends remaining level after declining 4% in the first quarter. The bank claimed that Chewy’s performance was exceptional in comparison to its peers, citing third-party statistics that demonstrated increased traffic and sales in May. While rival Petco saw a 2% decline in revenue, the company’s revenue increased by 8% in the first quarter.
Given that early second-quarter data is exceeding projections, BofA’s 8% growth prediction for Chewy may see some upside. The bank’s sales predictions for Chewy, Inc. (NYSE:CHWY) and its aggregate card data have become closer, indicating a greater fit with reported outcomes.
Chewy, Inc. (NYSE:CHWY) is an American online pet shop that offers services, pharmaceuticals, supplies, and pet food on its website and mobile app.
5. CarMax, Inc. (NYSE:KMX)
Number of Hedge Fund Holders: 59
CarMax, Inc. (NYSE:KMX) ranks among the best cyclical stocks to buy now. On June 23, RBC Capital maintained its Outperform rating on CarMax, Inc. (NYSE:KMX), but increased its price target to $81 from $80. The adjustment was made following what RBC called “better than feared results” from CarMax. The firm highlighted “notable upside surprises” in both gross profit and used unit comparable sales measures.
Despite the encouraging trend, RBC voiced some skepticism about the sustainability of current comparable sales patterns, pointing to macroeconomic uncertainty that may have an effect on consumer vehicle spending.
RBC Capital revised its financial forecasts for CarMax, Inc. (NYSE:KMX), lowering its earlier expectations of 2.6% and 5.3% net sales growth for 2025 and 2026 to 1.9% and 3.9%, respectively.
CarMax, Inc. (NYSE:KMX) is a used car retailer with two business segments: CarMax Auto Finance and CarMax Sales Operations. With 220 locations nationwide, it is also one of the largest car auction companies in the country.
4. Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 60
Marriott International, Inc. (NASDAQ:MAR) ranks among the best cyclical stocks to buy now. On June 23, JPMorgan began coverage of Marriott International, Inc. (NASDAQ:MAR) with a Neutral rating and a $284 price target. The bank describes Marriott as a “high-quality, asset-light compounder” with appealing higher-end chain-scale and customer exposure, indicating that it possesses a balanced risk/reward profile.
Marriott’s current value of 14.5x 2026E EV/EBITDA, according to JPMorgan, appropriately accounts for these favorable features, indicating limited upside potential at current levels.
The firm cites a number of reasons for Marriott’s 1.5–2x discount over its competitor Hilton since late 2023, including the fact that Marriott’s average net room growth has been lower at 5% as opposed to Hilton’s 6-7% growth.
Marriott International, Inc. (NASDAQ:MAR) is a Maryland-based multinational company that operates, franchises, and licenses lodging including hotel, residential, and timeshare properties. The company operates a portfolio of roughly 7,800 properties under 30 leading brands, spanning 138 countries.
3. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders: 62
Lennar Corporation (NYSE:LEN) ranks among the best cyclical stocks to buy now. On June 20, Keefe, Bruyette & Woods maintained its Market Perform rating on Lennar Corporation (NYSE:LEN) but reduced its price target to $114 from $128.
When compared to earlier predictions of 18.5%, the research firm’s 2025–2026 earnings per share estimates were cut by 17% due to lower predicted gross margins of 17.7–18.0%. Additionally, selling, general, and administrative expenses increased from 7.7% to 8.5%, according to KBW.
While Lennar Corporation (NYSE:LEN) enjoys the advantages of low financial leverage and operating scale, KBW also pointed out that the current housing market is still “challenged by stretched affordability, declining consumer confidence, and increased supply in key areas.”
Based in Miami-Dade County, Florida, Lennar Corporation (NYSE:LEN) is an American home construction company. Its homebuilding activities include buying, developing, and selling residential land as well as building and selling single-family attached and detached homes.
2. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders: 76
Hilton Worldwide Holdings Inc. (NYSE:HLT) ranks among the best cyclical stocks to buy now. On June 23, JPMorgan began coverage of Hilton Worldwide Holdings Inc. (NYSE:HLT) with a $282 price target and an Overweight rating.
With a high-single-digit EBITDA growth potential and a robust free cash flow conversion of 50–55%, the investment bank sees Hilton Worldwide Holdings Inc. (NYSE:HLT) as a high-quality company that can support 5-6% annual share repurchases to boost mid-teens EPS growth.
The firm found that Hilton’s premium value, which accounts for over 60% of its yearly EBITDA growth, as the key driver of its industry-leading net unit growth.
Through discounted cash flow analysis, JPMorgan determined that Hilton’s EBITDA would rise by more than $25 million for every percentage point of net unit growth, resulting in a fair value of around $300 per share.
Hilton Worldwide Holdings Inc. (NYSE:HLT) is an American multinational hospitality company that operates and leases a wide range of timeshare properties, hotels, and resorts. Its varied portfolio also includes the luxury brands Waldorf Astoria and Conrad Hotels.
1. Nike, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 81
Nike, Inc. (NYSE:NKE) ranks among the best cyclical stocks to buy now. Randal Konik, a Jefferies analyst, maintained his Buy rating for Nike, Inc. (NYSE:NKE) on June 23 and reaffirmed the price target at $115. The update followed Konik’s observation that market rival HOKA’s sales growth appeared to be slowing.
HOKA’s year-over-year sales growth dropped to +10% in the fourth fiscal quarter, the analyst noted, after increasing by +24% and +35% in the third and second fiscal quarters, respectively. Nike’s increased emphasis on innovation and the return of wholesale channels, including its partnership with Amazon, Konik says, put the company in a position to increase its market share.
The analyst observes that there is little competition in the footwear industry, and that Nike, Inc. (NYSE:NKE) has a sizable total addressable market (TAM) due to its wide range of price points that appeal to an array of customers.
Nike, Inc. (NYSE:NKE) is the largest retailer of sportswear and footwear in the world. The company develops, manufactures, markets, and sells clothing, accessories, equipment, and footwear across the globe.
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