3 More Cyclical Stocks to Buy for 2025

Core Insights - Cyclical companies, such as Freeport-McMoRan Inc. (FCX), can provide significant investment opportunities by trading within predictable ranges, allowing investors to buy low and sell high [1][3] - The recent performance of FCX, where shares rose 67% from $30 to$50, exemplifies the potential for high returns in cyclical stocks [3][4] - Eversource (ES) is expected to recover from a previous decline, with analysts projecting a revenue growth of 4% in 2025 and a 75% surge in cash flows [7][10] - AbbVie Inc. (ABBV) is experiencing a turnaround with new drug launches expected to match previous sales, alongside a favorable regulatory environment that could lead to a 20% upside in shares over the next year [13][15] - Kimberly-Clark Corp. (KMB) is positioned for a potential 15% share-price upside, supported by expected gross profit growth of 4% this year [20][21] Group 1: Freeport-McMoRan Inc. (FCX) - FCX shares dropped from $50 to$30 due to macroeconomic concerns, leading to a significant investment opportunity [3] - The stock's subsequent rise of 67% allowed for average gains of 119% through strategic selling [3][4] Group 2: Eversource (ES) - Eversource faced a 40% decline after abandoning offshore wind projects, resulting in substantial impairment charges [6][7] - Analysts predict a positive revenue growth of 4% for 2025 and a 75% increase in cash flows, indicating a recovery [7][10] - The announcement of the Stargate Project is expected to further boost Eversource's prospects, as it aligns with the growing demand for electricity [8][10] Group 3: AbbVie Inc. (ABBV) - AbbVie is navigating challenges from patent cliffs and regulatory pressures, but recent drug launches are showing promising results [11][13] - Analysts expect combined sales of new therapies to reach previous peak sales levels, suggesting a potential turnaround [13][15] - The regulatory landscape is shifting positively, with potential for a 20% upside in shares over the next year [15] Group 4: Kimberly-Clark Corp. (KMB) - Kimberly-Clark has maintained consistent profits but faces market fluctuations, trading between $120 and$145 [16][17] - Current trading at $127 presents an opportunity for a 15% upside, supported by expected gross profit growth [20][21] - The company is positioned to benefit from a temporary drawdown in market share, with analysts projecting an 11.8% increase in earnings per share [20]