As the economy ramps up in its fast-paced recovery, we think cyclical stocks The Gap (GPS), Danaos (NYSE:DAC), and CONSOL Energy (NYSE:CEIX) are well-positioned to thrive. Given the economic tailwinds and strong fundamentals, our proprietary POWR Ratings system has recently upgraded these three stocks to ‘Buy.’ Read on for some details as to why.Cyclical stocks are making waves, driven by the fast-paced economic recovery. Robust consumer spending and job growth have been driving cyclical industries, such as retail and transportation, which have been seeing solid demand lately. And as the economy continues to recover, we think companies operating in cyclical industries should witness further growth.
The AtlantaFed expects real U.S. GDP growth to range from 8.3% to 13.7% in the second quarter, which should bode well for cyclical industries.
Given this backdrop, we think fundamentally sound cyclical names The Gap, Inc. (GPS), Danaos Corporation (DAC), and CONSOL Energy Inc (NYSE:CNX). (CEIX) could deliver solid returns in the coming months. Also, these stocks have been recently upgraded to Buy in our proprietary POWR Ratings system.