Top US Cyclical Stocks to Watch in 2023

In the ever-evolving landscape of the stock market, cyclical stocks have always been a hot topic for investors. These stocks tend to perform well during economic upswings and suffer during downturns. As we approach 2023, several cyclical stocks in the United States are poised to outperform their peers. This article will highlight some of the top US cyclical stocks to watch and provide insights into why they are worth considering.

Automotive Industry: Tesla (TSLA)

The automotive industry is one of the most cyclical sectors in the stock market. As the world shifts towards electric vehicles (EVs), Tesla (TSLA) stands out as a leader in this space. With its innovative technology and growing market share, Tesla is expected to benefit significantly from the increasing demand for EVs. The company's recent expansion into new markets and the launch of new models are expected to drive growth in the coming years.

Consumer Discretionary: Netflix (NFLX)

The consumer discretionary sector is another area where cyclical stocks thrive. Netflix (NFLX) has been a dominant player in the streaming industry and has managed to maintain its position despite intense competition. As the world continues to embrace remote work and online entertainment, Netflix's subscriber base is expected to grow. The company's ongoing investments in original content and strategic partnerships make it a compelling cyclical stock to watch.

Technology: NVIDIA (NVDA)

The technology sector is known for its cyclical nature, and NVIDIA (NVDA) is a prime example. As the demand for high-performance computing continues to rise, NVIDIA's graphics processing units (GPUs) are in high demand. The company's partnerships with leading tech giants and its expanding product portfolio make it a strong candidate for growth in the coming years.

Energy: ExxonMobil (XOM)

The energy sector is often considered a cyclical stock due to its sensitivity to oil prices. ExxonMobil (XOM) is one of the largest oil and gas companies in the world and has a strong track record of generating consistent returns for investors. With the global economy recovering from the COVID-19 pandemic, demand for oil is expected to increase, potentially benefiting ExxonMobil's bottom line.

Financials: JPMorgan Chase (JPM)

The financial sector is another cyclical area where investors can find promising opportunities. JPMorgan Chase (JPM) is one of the largest banks in the United States and has a diverse portfolio of financial services. As the economy continues to grow, JPMorgan Chase is expected to benefit from increased lending and investment activities.

Case Study: Apple (AAPL)

Apple (AAPL) is a classic example of a cyclical stock that has managed to defy the odds. Despite the cyclical nature of the technology sector, Apple has consistently delivered strong performance over the years. This is largely due to its diverse product portfolio and strong brand loyalty. As the world becomes more digital, Apple's products are likely to remain in high demand, making it a compelling cyclical stock to watch.

In conclusion, the top US cyclical stocks to watch in 2023 include Tesla, Netflix, NVIDIA, ExxonMobil, and JPMorgan Chase. These companies are well-positioned to benefit from economic growth and increasing demand in their respective sectors. As always, it's important for investors to conduct thorough research and consult with a financial advisor before making any investment decisions.

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