5 Best Cyclical Stocks For Inflation

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 107

Topping our list of best cyclical stocks for inflation is JPMorgan Chase & Co. (NYSE:JPM), the largest bank in the U.S. with a balance sheet of $2.87 trillion as of 2022. The company operates through four segments: Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking, and Asset & Wealth Management. With the fed increasing interest rates, cyclical banking stocks such as JPMorgan Chase & Co. (NYSE:JPM) are lucrative investment options to consider.

This April, JPMorgan Chase & Co. (NYSE:JPM) reported earnings for the fiscal first quarter of 2022 in which it beat revenue estimates by $318.5 million. The company reported earnings per share of $2.63 and generated quarterly revenues of $30.72 billion. On April 14, Piper Sandler analyst Jeffery Harte raised his price target on JPMorgan Chase & Co. (NYSE:JPM) to $170 from $165 and maintained an Overweight rating on the shares.

By the end of the fourth quarter of 2021, 107 hedge funds were long JPMorgan Chase & Co. (NYSE:JPM). The total stakes of these hedge funds amounted to $6.58 billion, up from $5.63 billion in the preceding quarter with 101 positions. The investor sentiment for the stock is positive.

As of December 31, 2021, Fisher Asset Management is the leading stakeholder in JPMorgan Chase & Co. (NYSE:JPM) owning over 7 million shares of the stock. The total stakes of Ken Fisher’s hedge fund in the financial services company stand at $1.17 billion, which covers 0.65% of Fisher Asset Management’s 13F portfolio.

ClearBridge Investments has explained why investors should remain optimistic about their stakes in JPMorgan Chase & Co. (NYSE:JPM) in its fourth-quarter 2021 investor letter:

“Our energy and financials holdings kept pace in the 2021 rally.  In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”

You can also take a look at 10 Best Inflation-Proof Stocks and 10 Stocks That are Benefiting From Rising Inflation.

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