Sentences with phrase «cyclical companies»

Cyclical companies are businesses whose success or performance is heavily dependent on the ups and downs of the overall economy. When the economy is doing well, these companies thrive, but during economic downturns, they may struggle. Full definition
Particularly with cyclical companies this idea can be promising.
Other rate - sensitive assets (e.g. utilities, gold) sold off as well, and the rotation out of defensive names into more cyclical companies is evident in recent fund flows.
Be wary of investing in cyclical companies with high debt levels.
That can be especially important for cyclical companies that tend to lose money when the economy is weak.
The first way is to choose a production method that has high fixed costs and low variable costs, which is typically true of cyclical companies.
If we aren't spending, profits at cyclical companies head south.
The improvement in revenues — particularly from cyclical companies — and the strong global earnings picture support our belief that the global economy can sustain above - trend growth.
In the past, those were very cyclical companies, and it seems like this time they almost didn't have a normal cycle.
The opportunities we are finding are mostly cyclical companies.
If things get too bad, then cyclical companies can go bust, their stocks losing all their value.
However, the downside may not be as harsh as other cyclical companies.
For example, if many cyclical companies are showing strong relative strength, it might be an early signal of broad economic pickup in the future.
Second, he avoided cyclical companies that benefit from global economic growth, that is, energy and basic materials.
And the margin of safety I shoot for grows when looking at heavily cyclical companies.
Do you want to own cyclical companies including natural resource companies?
Other rate - sensitive assets (e.g. utilities, gold) sold off as well, and the rotation out of defensive names into more cyclical companies is evident in recent fund flows.
This is a rare condition in the real world, and non-existent with cyclical companies.
The main reason for this is that when inflation rises, usually earnings do also, at least at cyclical companies.
That said, a larger - than - expected QE program would be a tailwind for European cyclical companies as it would expand multiples, in much the same way that U.S. QE has driven valuations higher.
Highly cyclical companies like ATI are notoriously difficult to understand, value, and predict.
But by overweighting highly cyclical companies with the global yield curve already so flat, investors must believe that the yield curve has lost all of its ability to signal slower growth ahead.
In the past, I've stuck more with consumer cyclical companies that pay a decent and continuously growing dividend since one can argue a recession may not have as much as an effect (we'll always need toothpaste, I think).
That said, a larger - than - expected QE program should be a tailwind for European cyclical companies as it would expand multiples, in much the same way that U.S. QE has driven valuations higher.
For example, interest - rate - sensitive income stocks and bonds tend to do well coming out of the trough, and more cyclical companies excel later on as the recovery gains steam.
On a more granular level, investors may want to focus on those segments of the market, notably cyclical companies that stand to benefit from an acceleration in nominal growth.
Investors would buy cyclical companies, particularly U.S. small caps, and sell bonds.
And, as you mention, there are a lot of good consumer non cyclical companies out there for dividends and dividend growth like PG, CLX and KMB.
And, as you mention, there are a lot of good consumer non cyclical companies out there for dividends and dividend growth like PG, CLX and KMB.
We sold it, however, in mid-2011 when more cyclical companies got cheap due to fears of another economic crisis in Europe.
My first article on RealMoney dealt with the concept of financial slack, and why it is particularly valuable for cyclical companies not to take on as much leverage as possible.
«In bad times cyclical companies with heavy debt loads may well face insurmountable problems» Chris Browne
A highly cyclical company masquerading as a secular growth story — trading at nearly 9x REVENUES!
Dover is one of the very few cyclical companies that have managed to become dividend kings.
On the other hand, if the yield curve says that interest rates are expected to increase over the next couple of years, an allocation toward cyclical companies such as luxury - goods makers or entertainment companies makes sense.
Gibbs says the banks and cyclical companies ideally should have payout ratios under 50 %, whereas companies in more stable industries like utilities, telecoms and real estate can have payout ratios of between 60 % and 80 %.
David Merkel eplains why buying stock of an indebted cyclical company is never a good idea, even if Monosh Pabrai and Guy Spier own it (Horsehead)
Cyclical companies often have low P / E multiples near the top of the cycle, because the bear phase is anticipated.
In other words, depending on exactly how cyclical the company is and how cyclical its industry is, will ultimately determine whether earnings are to continue rising for a while or suddenly fall out of bed.
The chart below shows the ratio of the prices of cyclical stocks to stable growth stocks (an upward trending line represents cyclical companies outperforming stable growth companies).
Profits for cyclical companies fell slightly in the second quarter and then rebounded 8 percent in the third quarter.
But of course, cyclical companies also have their place in a diversified dividend income portfolio and taking some exposure to the car industry can make sense to «spice things a bit up».
Cyclical companies don't really bother me because many times the volatility can work to your advantage when you're in the accumulation stage of DGI.
UBS sees opportunity in cyclical companies that have exposure to the US dollar, given their recent underperformance despite the lower Australian dollar.
Subsequently he joined the research team at Banesto in charge of cyclical companies (Steel and oil sectors) and later formed and led the research team at Interdin.
For example, interest - rate - sensitive income stocks and bonds tend to do well coming out of the trough, and more cyclical companies excel later on as the recovery gains steam.
On a more granular level, investors may want to focus on those segments of the market, notably cyclical companies that stand to benefit from an acceleration in nominal growth.
Investors would buy cyclical companies, particularly U.S. small caps, and sell bonds.
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