Cyclical Stocks
Sector Analysis
Definition
Shares of companies whose earnings and stock prices closely follow economic cycles, performing well during expansions but declining during recessions due to sensitivity to economic conditions.
Key Points
- Earnings tied to economic growth
- Higher volatility than defensive stocks
- Benefit from economic recovery
Examples
Auto, construction, luxury goods companiesAirlines, hotels, discretionary retailersQuick Info
Category
Sector Analysis
Related Topics
economic cycles
industrial stocks
consumer discretionary
Related Terms
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