5 Best Consumer Cyclical Stocks To Buy Now

In this article, we will be taking a look at the 5 best consumer cyclical stocks to buy now. To read our detailed analysis, you can go directly to see the 11 Best Consumer Cyclical Stocks To Buy Now.

5. Mercadolibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 77

Mercadolibre, Inc. (NASDAQ:MELI) is a broad-line retail company. It is based in Uruguay.

Shares of Mercadolibre, Inc. (NASDAQ:MELI) were upgraded from Neutral to Buy on September 1 by Soomit Datta at New Street Research, who also announced a $1650 price target on the stock.

Mercadolibre, Inc. (NASDAQ:MELI) had 77 hedge funds long its stock in the second quarter, with a total stake value of $3.3 billion.

Fred Alger Management mentioned Mercadolibre, Inc. (NASDAQ:MELI) in its second-quarter 2023 investor letter:

“MercadoLibre, Inc. (NASDAQ:MELI) is the largest e-commerce company in Latin America, with its largest markets being Brazil, Argentina, and Mexico. The company offers a comprehensive suite of services, including an online marketplace for buyers and sellers, payment solutions through Mercado Pago, merchant and buyer financing through Mercado Credito, shipping services through Mercado Envios, and asset management through Mercado Fondo, among other services. We believe the e-commerce market within Latin America remains underpenetrated, creating a favorable backdrop for MercadoLibre, as they have been growing and investing heavily to expand its first mover advantage. Moreover, the company’s growing fintech payments business. Mercado Pago. is well-positioned to potentially emerge as a leader in Latin America, as well as an emerging online advertising presence which offers attractive margin expansion potential, in our view. While the company posted strong quarterly results, shares fell on fears that their exposure to Argentina, which saw its currency devalued, would impact company revenues in the near-term.”

4. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 78

A Buy rating and a $3677 price target were maintained on Booking Holdings Inc. (NASDAQ:BKNG) on September 26 by John Staszak at Argus Research.

Booking Holdings Inc. (NASDAQ:BKNG) is a hotels, resorts, and cruise lines company. It is based in Norwalk, Connecticut.

There were 78 hedge funds long Booking Holdings Inc. (NASDAQ:BKNG) in the second quarter, with a total stake value of $6.6 billion.

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 79

Our hedge fund data shows 79 hedge funds long Tesla, Inc. (NASDAQ:TSLA) in the second quarter. Their total stake value was $6.5 billion.

Tesla, Inc. (NASDAQ:TSLA) is an automobile manufacturer, most renowned for its development of state-of-the-art electric vehicles.

Piper Sandler’s Alexander Potter holds an Overweight rating and a $300 price target on Tesla, Inc. (NASDAQ:TSLA) as of September 29.

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 112

Alibaba Group Holding Limited (NYSE:BABA) is a broad-line retail company operating an e-commerce platform. It is based in China.

Alibaba Group Holding Limited (NYSE:BABA) had 112 hedge funds long its stock in the second quarter, with a total stake value of $4.1 billion.

A Buy rating and a $135 price target were maintained on Alibaba Group Holding Limited (NYSE:BABA) on August 11 by Youssef Squali at Truist Securities.

L1 Capital said the following about Alibaba Group Holding Limited (NYSE:BABA) in its second-quarter 2023 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

An Overweight rating and a $175 price target were maintained on Amazon.com, Inc. (NASDAQ:AMZN) on October 2 by Brian Nowak at Morgan Stanley.

A total of 278 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, with a total stake value of $34.9 billion.

Amazon.com, Inc. (NASDAQ:AMZN) is a big tech giant. It operates an e-commerce business alongside its physical retail stores and a cloud computing business named Amazon Web Services.

Here’s what Diamond Hill Capital said about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2023 investor letter:

“Among our top contributors were insurance company American International Group (AIG), auto retailer CarMax and global online retailer Amazon.com, Inc. (NASDAQ:AMZN).

Amazon’s management team has been working to improve retail profitability, and Q1 results showed progress. In the case of Amazon’s web services (AWS), the market has shifted its focus from where growth will bottom in the near term to how AI can help accelerate the adoption of public cloud services in the future. We believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow faster than the overall economy in the coming years.”

See also 15 Best Cyclical Stocks to Buy Now and 11 Best Consumer Cyclical Dividend Stocks To Buy.