Cyclical Stock
Definition
Shares of companies whose earnings and stock prices tend to follow the economic cycle, performing well in expansions and poorly in recessions.
Example
Automakers and airlines are classic cyclical stocks that rise sharply during economic booms.
Related Terms
Frequently Asked Question
What is a Cyclical Stock?
A Cyclical Stock is shares of a company whose performance closely follows the economic cycle — rising during expansions and falling during recessions. Automakers, airlines, and luxury goods companies are classic examples.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.