Investor Glossary-cyclical stockInvestor Glossary-cyclical stockInvestor Glossary-cyclical stockInvestor Glossary-cyclical stockInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cyclical Stock

The HTML to link to this page
 

A cyclical stock is one whose profits are highly correlated with the business cycle. When the economy is in expansion, a cyclical stock has increased profits. Conversely, when the economy slows, so do the prospects for a cyclical stock. A cyclical stock may be found in sectors such as automobile, travel, or manufacturing. The common thread is discretionary purchases that may be postponed during difficult economic times. For investors with longer time frames, purchasing a cyclical stock during an economic downturn is a classic contrarian strategy. The opposite of a cyclical stock is a defensive stock, one that outperforms during economic downturns. Companies providing consumer staples such as food, hygiene, and medications may have stocks that outperform during economic downturns.



Rate this cyclical stock definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: diluted share, real GDP, ex-dividend, FICO score, option premium, Zero Cost Collar, wholly-owned subsidiary, required rate of return, FTSE, LIBOR, labor relations, 144a, EBITDA, irrevocable trust, balance sheet, risk management, 401a, 1035 exchange, annual return, retained earnings, debt service coverage, 1031 exchange, Key Rate Duration, dividends payable, implied volatility, class C shares, quality assurance, in escrow, deferred revenue, minority interest, ex-dividend date, reverse mortgage, per diem, APR, liquidity ratio, current ratio, margin rate, cancelled check, open position, stock market close, VIX, inflation, stock split, command economy, limit order, phantom income, covered put, average price per share, deferred tax


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use