5 Best Cyclical Stocks to Buy Now

3. Brunswick Corporation (NYSE:BC)

Number of Hedge Fund Holders: 36

Brunswick Corporation (NYSE:BC) operates in the recreational marine industry, and it owns major boating including Sea Ray, Boston Whaler, Bayliner, Mercury Marine, Attwood, Lund, Crestliner, Mastervolt, MotorGuide, Harris Pontoons, Freedom Boat Club, Princecraft, Heyday, Lowe, Uttern, Quicksilver, and CZone, among many others. In Q3 2022, the company expects revenue growth of mid-twenties percent more than the third quarter of 2021 and an EPS between $2.50 and $2.65. Brunswick Corporation (NYSE:BC) is one of the best cyclical stocks to consider. 

On August 9, BMO Capital analyst Gerrick Johnson upgraded Brunswick Corporation (NYSE:BC) to Outperform from Market Perform with a price target of $110, up from $90. The stock has pulled back to an attractive valuation due to investor concerns about sustainable demand and the impact of a weakening economy, the analyst told investors. The present valuation “more than takes these factors into account” while demand for boats and marine products continues to be robust, meaningfully exceeding supply, noted the analyst.

Among the hedge funds tracked by Insider Monkey, 36 funds were long Brunswick Corporation (NYSE:BC) at the end of June 2022, compared to 37 funds in the prior quarter. William Von Mueffling’s Cantillon Capital Management is the biggest stakeholder of the company, with 4.3 million shares valued at $284 million. 

Here is what Chartwell Investment Partners has to say about Brunswick Corporation (NYSE:BC) in its Q2 2022 investor letter:

“We also took advantage of the sell-off in boat & engine manufacturer Brunswick Corp. (NYSE:BC, 2.3%) and added to the holding. This stock sells at less than 7 times its annual earnings per share ’22 EPS estimates. The company recently held an analyst briefing and quantified the downside to sales, margins, and earnings in an economic downturn. We think the stock is attractively priced even in that scenario and that it is a long-term double-digit-percentage earnings grower.”