Cyclical stocks ebb and flow with the overall economy.
When the economy is booming, cyclical stocks tend to perform well.
And when the economy is turning down, cyclical stocks tend to underperform.
Think companies that focus on luxury goods, travel companies or appliance manufacturers.
These are all things that folks spend more on when times are good and less on when times are bad.
But other companies are safer and more steadfast. These are called non-cyclical stocks.
They are companies that focus on the essentials.
Think water, groceries and consumer staples that we will almost certainly use every day.
Unfortunately, another one of life’s unavoidable certainties is death.
Another Category Altogether
“Death stocks” just happen to be some of the safest bets in the market.
With the general market going through some near-term volatility, this is a sector I’ve been checking out lately.
But like all areas of the market, some stocks are better than others.
And today, I want to tell you about two of my favorite stocks in the death sector…
Service Corporation International
Service Corporation International (SCI) is an $11.1 billion company that specializes in “deathcare” products and services, including burial caskets, funerals, cremations and all kinds of cemetery services.
SCI has a Surge Score of 89/100, meaning it is outperforming nearly 90% of publicly traded stocks.
Earnings were up 47% last quarter, and sales have been growing by double-digits.
The trend is healthy, and the stock is consolidating nicely in a tight compression zone.
I’ll keep an eye on this stock going forward and will keep you posted if a potential trade develops.
Carriage Services, Inc.
Carriage Services, Inc. (CSV) is very similar to Service Corporation International but is a much smaller company, as it is currently valued at about $970 million.
However, its 95/100 Surge Score means that CSV is even stronger than SCI.
The company is also seeing healthy growth in terms of sales and profits, and that trend is expected to continue through 2022.
The stock made new highs last week before pulling back over the following few days.
At this point, CSV is approaching its 20-day moving average, which could be a good place to start building a position.
Again, I’ll keep you posted as this situation develops.
Lastly, did you get a chance to check out my latest Watchlist?
And remember, if you’d like a step-by-step walkthrough on how to best take advantage of these weekly trades…
Be sure to check out my recent article, How to Follow My Weekly Trades, to know where I’m buying so that you can follow along.
Embrace the surge,
Editor, Stock Surge Daily