Surprise! This Cyclical Stock Is Booming Right Now
In this recession, most cyclical stocks -- or those that are highly sensitive to the health of the overall economy -- have been hit hard. That's not surprising; the COVID-19 pandemic is causing a good chunk of the economy, especially those in travel and leisure sector, to essentially close down. Though unemployment is improving, it's still above 10%, which is still a very large number.
But this is also a strange recession; after all, with people stuck at home, getting government stimulus checks, and saving money from travel and restaurants, it's actually leading to a boom in the stay-at-home economy, with surging stock prices for the companies that cater to this more digital, stay-at-home world.
That's also filtering down to much of the technology that powers that world. Although semiconductors and semiconductor equipment stocks are usually very cyclical, recent results from Applied Materials (NASDAQ: AMAT) last week shows the semiconductor manufacturing sector is actually in the midst of a counterintuitive boom.
Source Fool.com
