Reuters
Summary List PlacementInvestors are forecasting a rapid recovery in the US economy from the COVID crisis, as the successful vaccine rollout offers a path to reopening some of the hardest-hits sector.
The estimates from some of the leading institutions speak to the pace of expansion. Following 2020's contraction of 3.5% in US growth, the latest estimates from the OECD and investment banks UBS and Goldman Sachs are for GDP expansion this year of 6.5%, 6.6% and 6.9%, respectively.
This also offers investors an opportunity to take advantage of the huge upside on offer, as more of the so-called cyclical companies - those whose businesses are more closely tied to the health of the underlying economy - recover as well.
"Focusing on the most economically-sensitive companies will prove most advantageous, given the previously described backdrop," a team of Credit Suisse analysts led by senior equity strategist Patrick Palfrey said in a research note.
Cyclical stocks, usually from the energy, financial or discretionary sectors, are more closely linked to the economic cycle, and tend to perform more strongly as growth improves. During the last 12 months, with the COVID crisis crippling the US economy, the S&P cyclical basket underperformed its growth peer by over 76%. With this accelerating growth on the cards for the rest of the year, this dynamic could reverse.
Taken from the Russell 100 universe, these are the top 49 stocks that Credit Suisse calls the "super-cyclicals" - those best placed to capitalize on this swift and accelerating economic recovery:
1. Devon EnergyMarkets InsiderTicker: NYSE: DVN
Sector: Energy
Market Cap: $16.08 billion
2. Diamondback EnergyMarkets Insider
Ticker: NASDAQ: FANG
Sector: Energy
Market Cap: $13.64 billion
3. Pioneer Natural ResourcesMarkets Insider
Ticker: NYSE: PXD
Sector: Energy
Market Cap: $33.00 billion
4. Cimarex EnergyMarkets Insider
Ticker: NYSE: XEC
Sector: Energy
Market Cap: $6.67 billion
5. CF IndustriesMarkets Insider
Ticker: NYSE: CF
Sector: Materials
Market Cap: $10.27 billion
See the rest of the story at Business Insider
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