Cyclical stock

An equity security (stock) whose price is affected by the fluctuations of the overall economy or the business cycle. That is, the stock price tends to increase when the economy is doing well and tends to weaken when the economy is doing poorly. Such stocks are usually those of companies that sell discretionary products and services that consumers buy more of when the economy is booming, but cut back on during a recession (autos, airlines, furniture retailers, clothing stores, hotels, restaurants, etc.).