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

Last month, the economy saw an increase of 303,000 nonfarm payrolls, which could lead to a rise in consumer cyclical stocks. With more money chasing fewer goods and inflation remaining high, it is advisable to spend now rather than save for later.

Another factor that could drive consumer cyclical stocks up is the consistent spending habits of Americans. Recently, the collective credit card debt in the U.S. reached a record high of $1.13 trillion, with many individuals using buy now, pay later apps for everyday expenses.

While this spending trend poses a risk, the strong job market could continue to support consumer cyclical stocks in the future.

Best Buy (BBY) is a prominent player in the technology retail sector, based in Richfield, Minnesota. The company has diversified its product offerings over the years, including home appliances. Analysts currently rate BBY as a moderate buy, with an average price target of $85.43, representing a potential 10% increase.

Comcast (CMCSA), a media and technology company, also benefits from its studios and theme parks segment. With a consensus moderate buy rating from analysts and an average price target of $51.21, there is a potential upside of over 30%. The company is expected to see an increase in earnings per share and revenue in the coming years.

Live Nation Entertainment (LYV) operates in the live entertainment industry, promoting music events in various venues. Analysts unanimously rate LYV as a strong buy, with an average price target of $120.77, indicating a nearly 20% upside potential. The company is projected to see growth in earnings per share and revenue in the near future.

Overall, consumer cyclical stocks like Best Buy, Comcast, and Live Nation Entertainment are worth watching as consumer spending remains strong and the job market continues to thrive.