GoldenShare Broker Says Cyclical Stocks Will Outperform Their Defensive Counterparts In November
London, UK, 4th Dec 2021, ZEXPRWIRE, The economic data this week should be interesting, and as we await it with bated breath, the stock market may see some volatility. After all user-spending has been on an upward trend for quite some time now while inflation rates remain stable or slowly rising at best; if that doesn’t tell you something then we don’t know what will!
GoldenShare broker says that the odds continue to favor cyclical stocks in today’s trading session – which means those companies associated most heavily with manufacturing goods like steel makers could lead investors astray again before too long…
In summary, with all things being equal, cyclical stocks should outperform their defensive counterparts over the next couple of weeks and months. Having said that, ETFs like IYM , DIA , RLY , XLI and ETFS Physical Industrial Metal Shares ( NYSEARCA:PSCU ) look poised to keep pushing higher going into next week. Although they’re not necessarily the only options out there it doesn’t hurt to have at least some exposure in your portfolio for whatever reason moves you…
The top cyclical stocks in the market right now could be a good indication that we’re about to enter an economic upturn. If you play your cards right and take advantage of the volatility, it could be a very lucrative week indeed…
General Electric: GE is making headlines today with its latest announcement that it plans to split into three separate units. The first will be the health care arm which GE says they hope retain their name, “General Electric.” They also announced plans for energy and aviation groups respectively; these two latter segments are referred by management as “GEings” or Ge-company divisions where some tasks might fall under one category while others lie elsewhere within each group (i.e., an airline may use engines made in part by wind power).
Analysts are not too enthralled by the company’s plan to break itself into three pieces, but it might be just what its shareholders need to get excited about something other than their stock price again. Judging from GE’s recent performance Analysts won’t be holding their breath for this move…the company has already seen a significant improvement in share prices since December of last year due to the mega-merger with Baker Hughes Incorporated ( NYSE:BHI ) .
The newly merged company dropped further today after reporting that it expects lower earnings next quarter due to weak refining margins. This is probably one of the reasons why investors are flocking to non-cyclicals right now, because they offer higher return potentials over longer periods of time.
In any case, with a yield of 3.5 percent and a PE ratio of 85, GE shares make for a good buy right now if you think the split-up announcement will do anything to increase its share price going forward…
IBM: is also seeing ‘blue’ today despite reporting weaker than expected earnings per share (EPS) numbers. In fact, is saw EPS decline from $2.38 last year to just $2.13 this past quarter – that’s an 11% drop folks!
Sales also saw marginal declines from last year as well – from about $22 billion down to just under $21 billion this past quarter for example…the company reported Q3 revenues of almost $24 billion in 2013 so there’s no underestimating the impact of currency exchange with especially strong U.S. dollar at play in recent numbers…
IBM plans on investing $1 billion into its Watson artificial intelligence systems over the next three years; this will allow health care providers to gain access to more patient data than ever before, allowing them to make smarter decisions in real-time while also empowering physicians and caregivers alike…this technology has huge implications for all sorts of fields where it could be used (i.e., travel is one industry that comes to mind).
Actually, Analysts are most impressed by IBM’s vision for the future here; they’re not necessarily trying to invest their way out of pervious losses but rather doubling down on R&D in hopes that it’ll pay off later on…something that tech companies are, more or less, known for.
Analysts don’t know if it will necessarily do much to boost the company’s share price over the next month but I’d keep an eye on IBM going forward because this is probably just one of many tech related updates we’ll be hearing about in the future…
That said, there are some tech stocks worth watching right now particularly Apple ( NASDAQ:AAPL ) which announced yesterday they plan to hire around 1,000 new workers at their new Austin campus. This is most likely due to the fact they’re finally gaining ground against Google ( NASDAQ:GOOGL ) and Microsoft ( NASDAQ:MSFT ) with Siri voice-recognition technologies…something that could put them back in the number 1 position when it comes to mobile devices.
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