Jobs Boom Means Big Gains: 3 Consumer Cyclical Stocks to Buy as Employment Surges


  • More money equates to a better framework for consumer cyclical stocks.
  • Best Buy (BBY): Best Buy could benefit from sustained consumer spending habits.
  • Comcast (CMCSA): Comcast may rise on the desire for continued traveling.
  • Live Nation Entertainment (LYV): Live Nation could swing higher on the focus on experiential services.
Consumer Cyclical Stocks - Jobs Boom Means Big Gains: 3 Consumer Cyclical Stocks to Buy as Employment Surges

Source: Yeexin Richelle /

Last month, the economy added 303,000 nonfarm payrolls, potentially translating to a swing higher in consumer cyclical stocks. More dollars are chasing after fewer goods. And so long as inflation does not abate, in a price-ascending environment, it’s better to spend now than save for later.

The other factor that could boost consumer cyclical stocks is that Americans have shown little desire to curb their spending. Notably, our collective credit card debt ballooned recently to $1.13 trillion, a new record high. At the same time, a significant number of people are using buy now, pay later (BNPL) apps to pay for groceries.

Granted, that’s a huge risk factor because I’m not entirely sure how long this dynamic is sustainable. Nevertheless, if you believe the jobs machine can keep rolling, these are the consumer cyclical stocks to watch.

Best Buy (BBY)

A photo of a Best Buy store front.
Source: Ken Wolter /

Based in Richfield, Minnesota, Best Buy (NYSE:BBY) engages in the retail of technology products in the U.S., Canada and certain international markets. Primarily, its stores provide computing and mobile phone products. However, over the years, the company has also expanded to other product categories, such as home appliances. Since the start of the year, BBY has gained about 1% of equity value.

Right now, analysts rate shares a consensus moderate buy. However, the assessment is contested, breaking down as seven buys, seven holds and two sell ratings. That said, the average price target is reasonable, coming in at $85.43 or almost 10% higher. Still, with the reality of the strong jobs report, the experts may need to bump up their projections.

As it stands, analysts are looking for current fiscal year (2025) earnings per share to reach $6.03 on sales of $42.04 billion. However, that’s lower than last year’s print of $6.37 EPS on revenue of $43.45 billion. Nevertheless, fiscal 2026 could see an improvement in the top line to $42.91 billion, with the high-side landing at $44.47 billion.

Given that consumers show little sign of reducing their expenditures, BBY could be a surprise hit among consumer cyclical stocks.

Comcast (CMCSA)

Keeping NBC News on the Air Could Hamper Comcast Stock
Source: Shutterstock

Okay, Comcast (NASDAQ:CMCSA) isn’t quite a pure-play idea for consumer cyclical stocks. Per its public profile, the company operates as a media and technology firm. However, it also benefits from its studios and theme parts segment. That could make CMCSA one of the surprising hits among consumer cyclical stocks. While revenge travel may have faded, Deloitte notes that a new era of prioritizing travel may be emerging.

If so, Comcast deserves a closer look because it still offers a significant experience with its Universal Studios theme parks. Analysts rate shares a consensus moderate buy with a $51.21 average price target, implying just over 30% upside potential. Further, the most optimistic target calls for a price per share of $57.

For fiscal 2024, covering experts are looking for EPS of $4.23. That’s a solid improvement over last year’s result of $3.98. Also, in the following year, earnings could jump to $4.58 per share. On the top line, 2024 revenue could hit $124.2 billion. That would be up 2.2%.

Still, if travel prioritization is a reality, look for the most optimistic sales target, which is $126.92 billion.

Live Nation Entertainment (LYV)

Live Nation website displayed on smartphone hidden in jeans pocket.
Source: Piotr Swat / Shutterstock

Perhaps the riskiest idea on this list of consumer cyclical stocks, Live Nation Entertainment (NYSE:LYV) is what the name suggests, a live entertainment facilitator. Per its corporate profile, the company promotes live music events in its owned or operated venues, along with rented third-party venues. Fundamentally, the narrative here centers on the increased spotlight on experiential services.

Even better, those who lived through the Covid-19 crisis (that is, those who remember going through it) may have incurred a permanent shift in thinking. Having survived a catastrophe, these consumers may have the attitude that it’s best to live in the moment. Subsequently, analysts rate LYV a unanimous strong buy with a $120.77 average price target. That implies an upside of almost 20%.

For fiscal 2024, experts project that EPS will land at $1.80. That’s a big bump up from last year’s printo f $1.37. Further, fiscal 2025’s EPS could hit $2.20. On the revenue side, the top line could rise 7.7% to $24.49 billion. And in the following year, sales could hit $26.54 billion.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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