5 Undervalued Cyclical Stocks To Buy Now

In this piece, we will take a look at five undervalued cyclical stocks to buy now. If you want to take a deeper look at cyclical stocks then check out 15 Undervalued Cyclical Stocks To Buy Now.

5. Meritage Homes Corporation (NYSE:MTH)

Latest Share Price Upside: 30%

Analyst Average Share Price Target: $173

Meritage Homes Corporation (NYSE:MTH) is a home building company that operates in several American states. A strong home building and residential real estate market has helped the firm financially as it has beaten analyst EPS estimates for all four of its latest quarters.

As of Q2 2023, 31 out of the 910 hedge funds part of Insider Monkey’s database had bought Meritage Homes Corporation (NYSE:MTH)’s shares. Out of these, the firm’s biggest investor is Ken Fisher’s Fisher Asset Management courtesy of its $154 million stake.

4. MercadoLibre, Inc. (NASDAQ:MELI)

Latest Share Price Upside: 32%

Analyst Average Share Price Target: $1,632

MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguayan internet retail company that enables businesses to sell their products online. Its shares are rated Strong Buy on average and the stock has gained 49% year to date.

By the end of this year’s second quarter, 77 out of the 910 hedge funds profiled by Insider Monkey had invested in the firm. MercadoLibre, Inc. (NASDAQ:MELI)’s largest stakeholder is David Blood and Al Gore’s Generation Investment Management since it owns 580,023 shares that are worth $687 million.

3. Ulta Beauty, Inc. (NASDAQ:ULTA)

Latest Share Price Upside: 32%

Analyst Average Share Price Target: $537

Ulta Beauty, Inc. (NASDAQ:ULTA) sells beauty products, making it the perfect consumer cyclical stock. The firm posted strong second quarter earnings results which saw it beat Wall Street revenue and EPS estimates and raise the full year guidance as well.

Insider Monkey scoured through 910 hedge fund portfolios and discovered 49 Ulta Beauty, Inc. (NASDAQ:ULTA) investors during 2023’s June quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the company’s biggest shareholder through a stake worth $475 million.

2. Burlington Stores, Inc. (NYSE:BURL)

Latest Share Price Upside: 35%

Analyst Average Share Price Target: $208

Burlington Stores, Inc. (NYSE:BURL) is a clothing retailer that sells products in the U.S. and Puerto Rico. Inflation and a tough consumer environment have dented the firm’s financial performance, as it has missed analyst EPS estimates in two out of its four latest quarters.

After digging through 910 hedge fund holdings for their second quarter of 2023 shareholdings, Insider Monkey found out that 41 had held a stake in the company. Out of these, Burlington Stores, Inc. (NYSE:BURL)’s largest stakeholder is Jim Simons’ Renaissance Technologies since it owns $159 million worth of shares.

1. Cavco Industries, Inc. (NASDAQ:CVCO)

Latest Share Price Upside: 42%

Analyst Average Share Price Target: $374

Cavco Industries, Inc. (NASDAQ:CVCO) builds and sells recreational vehicles, pre built homes, and other products. Its shares are rated Strong Buy on average and inflationary pressures made the firm’s revenue drop during its second quarter.

20 out of the 910 hedge funds part of Insider Monkey’s Q2 2023 database have invested in Cavco Industries, Inc. (NASDAQ:CVCO). Out of these, the firm’s biggest investor is Richard Scott Greeder’s Broad Bay Capital since it owns 357,886 shares that are worth $105 million.

Disclosure: None.  You can also take a look at 11 Most Undervalued Bank Stocks To Buy According To Wall Street Analysts and Ken Fisher’s Top 15 Healthcare Stock Picks.

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