Top 15 Consumer Cyclical Stocks by Marvin Opportunity Score
Marvin's rules picked 15 Consumer Cyclical stocks with the highest Opportunity scores among companies with solid Business Quality. They include retailers, restaurants, toy, auto and travel-related names, each judged against its own industry.
Consumer Cyclical companies sell things people tend to buy more of when they feel comfortable with their finances, such as clothes, restaurant meals, cars, homes and leisure. Their results often rise and fall with the economy.
This list shows the 15 stocks that Marvin's rules ranked highest in the sector on Opportunity score, which compares each company with others in its own industry. Every stock here also cleared Marvin's minimum bar for Business Quality.
Keep in mind that the scores describe how a company compares with its industry today. They are not forecasts or advice. Read each blurb's caution, since strong figures in one area can sit alongside weak or missing ones in another.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size, then kept only the Consumer Cyclical sector and required a Business Quality score above a set cutoff. It ranked the stocks by Opportunity score, highest first, with no more than 4 per industry. All Marvin scores run from zero to one hundred and are relative to each company's own industry, so a high score means a company looks strong against its direct peers, not against every stock.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Consumer Cyclical sector, highest Opportunity score first, among companies with a Business Quality score of at least 50; at most 4 per industry.
The stocks, one by one
Andersen ANDG
Andersen has an Opportunity score of 96 and revenue growth of 14.6%, while its free cash flow margin of 18.4% suggests it converts sales into cash well. The caution: operating margin is -7.4%, a loss from core operations. Gross margin, return on equity and debt figures are not available.
DICK'S Sporting Goods, Inc. DKS
DICK'S Sporting Goods grew revenue 28.1% in its last fiscal year and earned a return on equity of 14.7%, a healthy use of shareholder money. The caution is thin profitability: operating margin is 5.5% and free cash flow margin only 1.1%.
Hasbro, Inc. HAS
Hasbro combines a gross margin of 75.6% with an operating margin of 20.6%, suggesting strong profitability, and revenue growth of 13.1%. The caution is borrowing: debt-to-equity is 5.31, and the very high return on equity of 108.7% can be inflated when equity is small.
Standard Motor Products, Inc. SMP
Standard Motor Products grew revenue 22.4% and has a moderate debt-to-equity ratio of 0.97. The caution is that profits look slim: operating margin is 8.4%, free cash flow margin 4.7% and return on equity just 7.1%.
Restaurant Brands International Inc. QSR
Restaurant Brands International shows strong profitability, with an operating margin of 26.9% and a free cash flow margin of 16.8%, plus growth of 12.2%. The caution is leverage: debt-to-equity is 4.06, so the company carries a notable debt load. Gross margin is not available.
Abercrombie & Fitch Co. ANF
Abercrombie & Fitch pairs an operating margin of 13.7% and a return on equity of 39.6% with a free cash flow margin of 10.6%. The caution is slower expansion, with revenue growth of just 6.4%. Gross margin and debt figures are not available.
Five Below, Inc. FIVE
Five Below has a Business Quality score of 95, revenue growth of 22.9% and a gross margin of 40.3%. Its operating margin is 14.7%, a decent profit level. The caution: free cash flow margin is 11.3%, lower than operating margin, and no debt figure is available.
H&R Block, Inc. HRB
H&R Block turns a lot of revenue into cash, with a free cash flow margin of 19.2% and a gross margin of 44.3%. The caution: debt-to-equity is high at 17.89, its return on equity of 624.4% is likely stretched by small equity, and growth is only 4.9%.
Las Vegas Sands Corp. LVS
Las Vegas Sands shows an operating margin of 21.5%, a free cash flow margin of 19.7% and revenue growth of 15.2%. The caution is heavy borrowing: debt-to-equity is 23.57, and the return on equity of 297.2% is boosted by that leverage.
Darden Restaurants, Inc. DRI
Darden Restaurants has a Business Quality score of 92, revenue growth of 9.4% and an operating margin of 11.7%, a steady if unspectacular profile. The caution: free cash flow margin is only 7.9%, and debt-to-equity of 4.15 shows some reliance on borrowing.
Toll Brothers, Inc. TOL
Toll Brothers has an operating margin of 13.8% and a free cash flow margin of 10.1%, both healthy, plus a Business Quality score of 89. The caution is growth: revenue rose only 1.1% last fiscal year. No debt figure is available.
Carvana Co. CVNA
Carvana has the fastest revenue growth on this list at 48.6%, with an operating margin of 8.9% and a return on equity of 38.9%. The caution: its free cash flow margin is just 3.7% and gross margin is 19.4%, so margins are thin.
Weyco Group, Inc. WEYS
Weyco Group converts sales into cash well, with a free cash flow margin of 16.2%, an operating margin of 15.3% and a gross margin of 49.1%. The caution is shrinking sales: revenue growth was -4.9% last fiscal year. No debt figure is available.
Garrett Motion Inc. GTX
Garrett Motion has a free cash flow margin of 10.3% and a gross margin of 20.3%, with revenue growth of 3.1%. The caution is limited information and modest growth: operating margin, return on equity and debt figures are all unavailable, so the picture is incomplete.
Movado Group, Inc. MOV
Movado Group has a gross margin of 56.1% and a free cash flow margin of 10.4%. The caution: its Business Quality score of 63 is the lowest here, revenue growth is just 2.7%, and operating margin of 6.9% and return on equity of 8.2% are modest.
Common questions
What does Consumer Cyclical mean?
It is a sector of companies whose sales depend heavily on how much consumers choose to spend on non-essentials, such as retail, restaurants, travel, homes and cars. Demand often weakens when the economy slows.
Does a high Opportunity score mean I should buy the stock?
No. Marvin's scores only describe how a company compares with other companies in its industry today. They are not predictions, price targets or advice, so use them as a starting point for your own research.
Why are some figures missing for certain stocks?
Marvin only shows a figure when the underlying data is available for that company. If a measure such as debt-to-equity or operating margin is missing, it was not available, and the blurb treats that as a reason for extra caution.
Keep reading
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- Top 20 Large-Cap Stocks Right Now, Ranked by Marvin Scores
- Top 20 Top-Rated Stocks Right Now: Marvin's Favorites
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.