2 More Cyclical Stocks to Buy on the Dip 

Last week, I (Tom Yeung) introduced you to two cyclical stocks to buy immediately. 

These promising firms couldn’t have been more different, at least from a business perspective: 

1. Digital Realty Trust Inc. (DLR) is a $50 billion data center company leasing millions of square feet to AI cloud computing customers.  
2. Tyson Foods Inc. (TSN) packs chicken and beef into grocery store containers. 

Yet, these two companies are both riding cyclical waves. The AI Boom is driving Digital Realty’s business to new heights, while a turnaround in cattle production is powering Tyson to a strong recovery. 

That pair joins another eight recommendations from January that also focused on riding cyclical trends. These 10 high-quality firms have now risen 7% on average – outperforming the weighted S&P 500 return (-3%) and trouncing the -6% decline in the Nasdaq Composite over the same period. 

That’s because cyclical effects can often overwhelm broader market negativity. Commodity prices surged during the 2008 financial crisis while everything else was plummeting… airline stocks boomed in the mid-2010s as oil prices collapsed… and chipmaking stocks surged in 2020 on a global shortage despite the broader Covid-19 selloff. 

Today, the cycle is pointing upward for power-producing companies… financial exchanges… meatpackers… and more. That’s happening even as the rest of the market goes in reverse. 

Nevertheless, these wonderful up-cycles are incredibly short to Keith Kaplan, CEO of TradeSmith. He’s helping his software firm’s investor customers find cycles across decades… if not longer. 

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