Cyclical stock

Cyclical stocks tend to rise in value during an upturn in the economy and fall during a downturn. They usually include stock in industries that flourish in good times, including airlines, automobiles, and travel and leisure.

In contrast, stock in industries that provide necessities such as food, electricity, gas, and health care products tend to be more price-stable.

Companies that provide services that reduce the expenses of other companies also are usually more stable. Those stocks are sometimes called countercyclicals.