Even though the economy is not necessarily out of the woods yet in terms of recovering from the impacts of the pandemic, now might be a great time to look at increasing exposure to cyclical stocks. These companies are sensitive to economic or business cycles, which means they are poised to outperform if and when the economy is firing on all cylinders again. It appears that funds are starting to get more bullish on the economic recovery given that we are once again seeing money rotate into cyclical sectors, which is why it might be a good idea to start adding shares of the top cyclical names.

While investing in these companies means you will need to pay extra close attention to economic reports and how the coronavirus is impacting the prospects of the reopening, they could end up paying off in a big way over the next few months. There are 3 compelling cyclical stocks that stand out as buys at the moment, and we’ve provided a brief overview of them below.

Caterpillar (NYSE: CAT)

Morgan Stanley (NYSE: MS)

United Rentals (NYSE: URI)