Definitions for "Cyclical stocks"
Stocks of cyclical industries such as automotive and other heavy manufacturers that are subject to broad swings in economic activity. Cyclical stocks often anticipate changes in the economy, reaching their highs (or lows) just before major shifts in the economy.
securities of companies whose operations are tied to business cycles, doing well during economic recoveries and sliding during recessions.
The earnings on these stocks are tied very closely to the overall business cycle and economic state. Examples include the housing industry and industrial equipment companies.