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The Consumer Cyclical sector includes companies that produce goods and services sensitive to economic cycles. This sector contains sub-sectors like automotive, retail, and leisure. Examples of companies in this sector are TM, MCD, and TSLA.TO, which are involved in automotive and retail industries.
Canadian investors may seek exposure to the Consumer Cyclical sector for diversification benefits, as it tends to perform differently than other sectors. A positive macro thesis on consumer spending can also drive investment in this sector.
Canadian investors should consider balance-sheet quality and competitive moat when picking individual stocks in the Consumer Cyclical sector. A company's ability to withstand economic cycles is also crucial. Additionally, evaluating a stock's valuation relative to its peers can help investors make informed decisions.
The Consumer Cyclical sector, which includes stocks such as retail and automotive companies, can benefit from being held in a Tax-Free Savings Account (TFSA). This is because the TFSA provides tax-free growth and withdrawals, which can help investors maximize their returns.
Amazon (AMZN.TO) — operates a vast e-commerce platform offering a wide range of products and services to consumers. Tesla (TSLA.TO) — manufactures and sells electric vehicles, solar panels, and energy storage products, focusing on sustainable energy solutions.
TFSA — Cyclicals offer strong upside in expansion phases (Amazon, Tesla) — a TFSA captures the gains tax-free and lets you withdraw without penalty.
The Consumer Cyclical sector in Canada includes stocks of companies that provide goods and services sensitive to economic cycles. Some notable consumer cyclical stocks listed in Canada are those of companies in the retail and automotive industries.
In the Consumer Cyclical sector, Canadian dividend taxation is more favorable in a non-registered account due to the dividend tax credit for eligible dividends. For U.S. stocks in this sector, holding them in an RRSP eliminates the 15% U.S. withholding tax on dividends.
For Canadian investors, the Consumer Cyclical sector presents a range of options. Buying individual stocks can provide targeted exposure to specific companies, but it also increases risk if that company underperforms.
ETFs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
AM AMZN.TO Amazon.com, Inc. | Consumer Cyclical | TSX | +533 | $3.6T | $28.77 | +28.8% | 30.26 | — | 1.47 | |
AM AMZN Amazon.com, Inc. | Consumer Cyclical | NASDAQ | +533 | $2.7T | US$250.02 | +29.8% | 31.65 | — | 1.47 | |
TS TSLA.TO Tesla, Inc. | Consumer Cyclical | TSX | +340 | $2.1T | $36.93 | +20.7% | 380.20 | — | 1.79 | |
TS TSLA Tesla, Inc. | Consumer Cyclical | NASDAQ | +340 | $1.6T | US$423.70 | +17.7% | 399.81 | — | 1.79 | |
HD HD The Home Depot, Inc. | Consumer Cyclical | NYSE | +239 | $312.1B | US$312.97 | -13.5% | 22.52 | 2.94% | 1.00 | |
BA BABA Alibaba Group Holding Limited | Consumer Cyclical | NYSE | +29 | $305.2B | US$127.21 | +10.8% | 19.17 | 0.85% | 0.49 | |
TM TM Toyota Motor Corporation | Consumer Cyclical | NYSE | +5 | $234.9B | US$180.22 | +1.3% | 10.27 | 3.02% | 0.33 | |
MC MCD McDonald's Corporation | Consumer Cyclical | NYSE | +196 | $194.2B | US$273.29 | -8.4% | 23.04 | 2.66% | 0.44 | |
TJ TJX The TJX Companies, Inc. | Consumer Cyclical | NYSE | +219 | $174.6B | US$157.90 | +25.2% | 30.11 | 1.24% | 0.64 | |
BK BKNG Booking Holdings Inc. | Consumer Cyclical | NASDAQ | +222 | $127.7B | US$164.78 | -25.9% | 22.09 | 0.96% | 1.10 | |
PD PDD PDD Holdings Inc. | Consumer Cyclical | NASDAQ | +60 | $121.6B | US$85.40 | -8.3% | 8.87 | — | 0.03 | |
LO LOW Lowe's Companies, Inc. | Consumer Cyclical | NYSE | +198 | $116.4B | US$207.65 | -2.9% | 18.12 | 2.24% | 0.90 | |
SB SBUX Starbucks Corporation | Consumer Cyclical | NASDAQ | +154 | $109.3B | US$95.89 | +21.3% | 75.69 | 2.50% | 1.01 | |
MA MAR Marriott International, Inc. | Consumer Cyclical | NASDAQ | +145 | $99.3B | US$376.75 | +40.4% | 39.37 | 0.78% | 1.11 | |
ME MELI MercadoLibre, Inc. | Consumer Cyclical | NASDAQ | +123 | $83.1B | US$1,638.54 | -35.3% | 44.85 | — | 1.41 | |
RC RCL Royal Caribbean Cruises Ltd. | Consumer Cyclical | NYSE | $76.8B | US$286.42 | +1.7% | 17.37 | 1.76% | 1.78 | ||
HL HLT Hilton Worldwide Holdings Inc. | Consumer Cyclical | NYSE | +157 | $75.4B | US$331.37 | +27.5% | 50.02 | 0.18% | 1.07 | |
RO ROST Ross Stores, Inc. | Consumer Cyclical | NASDAQ | +168 | $74.9B | US$232.62 | +69.1% | 32.36 | 0.77% | 0.88 | |
GM GM General Motors Company | Consumer Cyclical | NYSE | +151 | $73.7B | US$81.70 | +63.3% | 30.38 | 0.86% | 1.29 | |
AT ATD.TO Alimentation Couche-Tard Inc. | Consumer Cyclical | TSX | +1 | $73.5B | $80.03 | +14.7% | 19.47 | 1.05% | 0.77 | |
OR ORLY O'Reilly Automotive, Inc. | Consumer Cyclical | NASDAQ | +184 | $72.4B | US$87.38 | +1.1% | 28.30 | — | 0.58 | |
DA DASH DoorDash, Inc. | Consumer Cyclical | NASDAQ | +159 | $63.6B | US$154.58 | -22.1% | 75.85 | — | 1.87 | |
F F Ford Motor Company | Consumer Cyclical | NYSE | +150 | $61.5B | US$15.71 | +51.0% | — | 3.44% | 1.66 | |
RA RACE Ferrari N.V. | Consumer Cyclical | NYSE | — | $60.7B | US$344.40 | -27.5% | 32.56 | 1.24% | 0.59 | |
AB ABNB Airbnb, Inc. | Consumer Cyclical | NASDAQ | +154 | $55.8B | US$133.59 | +2.3% | 32.92 | — | 1.21 | |
NK NKE NIKE, Inc. | Consumer Cyclical | NYSE | +133 | $52.6B | US$43.81 | -27.5% | 30.41 | 3.55% | 1.12 | |
SE SE Sea Limited | Consumer Cyclical | NYSE | +47 | $50.7B | US$89.46 | -47.7% | 35.64 | — | 1.57 | |
AZ AZO AutoZone, Inc. | Consumer Cyclical | NYSE | +148 | $50.1B | US$3,061.65 | -7.9% | 20.58 | — | 0.44 | |
EB EBAY eBay Inc. | Consumer Cyclical | NASDAQ | +179 | $48.3B | US$108.82 | +63.2% | 25.24 | 1.13% | 1.39 | |
DH DHI D.R. Horton, Inc. | Consumer Cyclical | NYSE | +137 | $41.0B | US$144.50 | +19.6% | 13.81 | 1.22% | 1.41 | |
YU YUM Yum! Brands, Inc. | Consumer Cyclical | NYSE | +153 | $40.9B | US$148.44 | +9.4% | 23.86 | 2.03% | 0.60 | |
JD JD JD.com, Inc. | Consumer Cyclical | NASDAQ | +10 | $39.7B | US$29.41 | -2.9% | 21.04 | 3.47% | 0.40 | |
CM CMG Chipotle Mexican Grill, Inc. | Consumer Cyclical | NYSE | +142 | $36.9B | US$28.74 | -35.9% | 29.23 | — | 1.03 | |
HM HMC Honda Motor Co., Ltd. | Consumer Cyclical | NYSE | $36.0B | US$27.71 | -11.4% | — | 4.97% | 0.27 | ||
QS QSR.TO Restaurant Brands International Inc. | Consumer Cyclical | TSX | +37 | $35.1B | $101.09 | +10.9% | 23.99 | 3.43% | 0.55 | |
LV LVS Las Vegas Sands Corp. | Consumer Cyclical | NYSE | +129 | $33.7B | US$50.86 | +20.7% | 18.66 | 2.18% | 0.84 | |
TC TCOM Trip.com Group Limited | Consumer Cyclical | NASDAQ | $30.2B | US$47.94 | -25.2% | 6.75 | 0.57% | -0.04 | ||
CA CASY Casey's General Stores, Inc. | Consumer Cyclical | NASDAQ | +126 | $28.6B | US$774.19 | +86.6% | 44.04 | 0.30% | 0.65 | |
VI VIK Viking Holdings Ltd | Consumer Cyclical | NYSE | $28.2B | US$88.64 | +89.2% | 34.24 | — | 1.57 | ||
TP TPR Tapestry, Inc. | Consumer Cyclical | NYSE | +137 | $28.2B | US$139.61 | +75.1% | 44.48 | 1.10% | 1.47 | |
CP CPNG Coupang, Inc. | Consumer Cyclical | NYSE | +48 | $26.9B | US$16.42 | -43.8% | — | — | 1.20 | |
EX EXPE Expedia Group, Inc. | Consumer Cyclical | NASDAQ | +161 | $25.8B | US$225.41 | +31.7% | 19.96 | 0.78% | 1.30 | |
MG MG.TO Magna International Inc. | Consumer Cyclical | TSX | +14 | $25.8B | $94.70 | +87.4% | 27.24 | 3.05% | 1.85 | |
QS QSR Restaurant Brands International Inc. | Consumer Cyclical | NYSE | +37 | $25.2B | US$72.76 | +9.4% | 24.02 | 3.48% | 0.55 | |
RI RIVN Rivian Automotive, Inc. | Consumer Cyclical | NASDAQ | +54 | $24.5B | US$18.27 | -7.6% | — | — | 1.65 | |
WS WSM Williams-Sonoma, Inc. | Consumer Cyclical | NYSE | +141 | $24.4B | US$207.11 | +17.3% | 22.82 | 1.49% | 1.49 | |
IH IHG InterContinental Hotels Group PLC | Consumer Cyclical | NYSE | $23.8B | US$160.50 | +30.6% | 31.87 | 1.19% | 1.03 | ||
DR DRI Darden Restaurants, Inc. | Consumer Cyclical | NYSE | +140 | $22.7B | US$198.27 | -2.0% | 21.51 | 2.94% | 0.59 | |
PH PHM PulteGroup, Inc. | Consumer Cyclical | NYSE | +124 | $22.3B | US$117.21 | +17.0% | 11.43 | 0.88% | 1.24 | |
SW SW Smurfit Westrock Plc | Consumer Cyclical | NYSE | $22.1B | US$42.12 | -12.8% | 57.15 | 4.40% | 0.94 |