We recently compiled a list of the 7 Best Consumer Cyclical Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Booking Holdings Inc. (NASDAQ:BKNG) stands against the other consumer cyclical stocks.
Cyclical stocks are shares of companies whose performance is heavily dependent on business cycles and economic conditions. These stocks represent industries that produce non-essential, or discretionary, goods and services, such as automobiles, housing, entertainment, travel, and retail.
As the Federal Reserve lowers interest rates, it creates a favorable environment for investing in cyclical stocks. Lower interest rates reduce the cost of borrowing, which encourages both consumers and businesses to take out loans and spend more. This boost in consumer spending is particularly beneficial for companies that sell discretionary goods and services, such as those in the automotive, housing, travel, and retail sectors.
According to the latest…