Published on 21 Apr 2024 on Insider Monkey via Yahoo Finance

10 Undervalued Cyclical Stocks To Invest In According to Analysts

In this article, we discuss the 10 undervalued cyclical stocks to invest in according to analysts. To skip the detailed analysis of current market conditions and cyclical stocks, go directly to the 5 Undervalued Cyclical Stocks To Invest In According to Analysts.

The stocks that follow the patterns of the economy are known as cyclical stocks. Investors usually prefer these stocks during robust economic conditions and ignore them during downturns. However, this is just a general definition and every economic cycle is different. For example, energy is usually considered a cyclical sector, yet it was the best-performing sector in 2022 when inflation reached record highs, averaging 8% in 2022. By the end of the year, the Energy Select Sector SPDR Fund (XLE) had gained nearly 58% while the S&P 500 experienced its worst year since 2008, declining by 18.1%.