This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Cyclical Stocks With Room To Rally

​Chris Lau, Kapitall: While the S&P 500 hovers around yearly highs, the risk of losses for bearish investors getting caught in the updraft is rising. Cyclical companies, which can include those in the resource sector, could offer disproportionately higher returns than the market.

[Read more from Kapitall: Hedge Funds Booking 3 Rallying Tourism Stocks as International Travel Soars]

Three companies most heavily shorted on the S&P 500 are:

Screen Shot 2013-08-12 at 2.07.19 PM

 

 

 

 

 

 

Cliffs Natural Resources (CLF)  is up 39.40% this month. The company was thought to be a victim of lower iron ore prices. When Cliffs reported second quarter results that exceeded estimates, shares continued on an upward trend. July may have marked a bottom for shares:

Click on the images below to see data over time. Sourced from Zacks Investment Research.

<p>Your browser does not support iframes.</p>

Cliffs earned $146 million in profits last quarter, and generated $414 million from operations. Sales for coal also rose 36% in North America. In addition, Cliffs settled its dispute with the labour force at its Bloom Lake mine on August 2, 2013. This reduces uncertainty for at least one of its facilities.

United States Steel (X) has a short float of 30.10%. The stock is stuck in a range that began in April, 2013:

<p>Your browser does not support iframes.</p>

Future earnings for the firm depend on the price of iron ore, which rose over the last few weeks. Prices for the metal were supported when China restocked its supply of iron ore, while raising steel output. Iron ore was around $133 per ton on August 7, 2013. If iron ore prices hold, shares in United States Steel could find a bottom in the $16 – $19 range.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,130.66 +89.12 0.49%
S&P 500 2,114.50 +10.30 0.49%
NASDAQ 5,066.1340 +33.3830 0.66%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs