5 Best Cyclical Stocks To Buy in 2022

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

5. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 42

AutoZone, Inc. (NYSE:AZO) is a Tennessee-based company that manufactures and sells automotive replacement parts and accessories. On October 4, AutoZone, Inc. (NYSE:AZO) announced that its board authorized an additional $2.5 billion to its current share repurchase program. As of August 27, AutoZone, Inc. (NYSE:AZO) had more than 6,000 stores in the United States, around 700 in Mexico, and 72 in Brazil. Since initiating the share repurchase program in 1998, the company’s board has authorized $33.7 billion in buybacks. It is one of the best cyclical stocks to buy in 2022. 

Argus analyst Taylor Conrad on September 27 raised the price target on AutoZone, Inc. (NYSE:AZO) to $2,330 from $2,210 and reaffirmed a Buy rating on the shares. The company’s earnings have recovered from their pandemic lows and have now outperformed Wall Street estimates for nine consistent quarters, the analyst told investors in a research note. She added that there are opportunities for further growth as the average age of vehicles increases and AutoZone, Inc. (NYSE:AZO) wins market share in the commercial segment. The analyst also lifted her FY23 EPS estimates for AutoZone, Inc. (NYSE:AZO) to $127.50 from $126.00.

Among the hedge funds tracked by Insider Monkey, Arrowstreet Capital held a notable position in AutoZone, Inc. (NYSE:AZO), comprising 149,781 shares worth about $322 million. Overall, 42 hedge funds were bullish on the stock at the end of June 2022, up from 38 funds in the last quarter. 

Here is what Carillon Tower Advisers specifically said about AutoZone, Inc. (NYSE:AZO) in its Q2 2022 investor letter:

“AutoZone, Inc. (NYSE:AZO) sells automotive replacement parts and accessories. The company reported another solid quarterly update that highlighted particularly robust growth in its commercial segment, market share gains, and stable gross margins. Additionally, investors have appreciated the company’s historically stable business model that is positioned to perform well in periods of economic stress.”