The company sells a surprising amount of its sculpting lipstick, stay-in-place foundation and skin care creams at airports. Ms. Perin Vinton is betting, in part, that the company’s sales will continue to recover as vaccinated travelers return to the skies and as people simply return to work and socialize face to face.
“Now, it’s really like we only put on barely a little bit of makeup for a Zoom call,” Ms. Perin Vinton joked.
She has also beefed up her holdings of other companies that are poised to ride the recovery, including the casino operator Las Vegas Sands and Airbnb, both of which should profit as the travel and leisure sector bounces back.
At Goldman Sachs Asset Management, portfolio managers are still focused on tech stocks with long-term potential, but they are also looking for companies with close ties to the current business cycle, said Katie Koch, a global co-head of fundamental equity funds at the firm.
“We don’t want to get run over by the cycle,” she said.
The approach at Goldman means looking at cyclical stocks that also have the potential to capitalize on longer-term trends. Examples, Ms. Koch said, could include an aluminum can company, which could see an uptick in activity during the recovery while benefiting from a shift away from single-use plastic. Or a copper miner, which will be lifted not only by higher commodity prices linked to rising global demand but also by copper’s use in transitional technologies such as solar and wind power.
Though some shares that were wildly popular last year have declined — Peloton is down 18.3 percent, and that’s an improvement from the aftermath of a recall of its treadmills — technology as a whole is by no means tumbling. Zoom Video Communications was up 14.7 percent in the first six months of this year, which looks meager only compared with a rise of almost 400 percent in 2020. The tech-heavy Nasdaq Composite index was up 12.5 percent in the first half of the year, even if cyclical stocks were bigger gainers.
The result is a broad rally that analysts expect to continue. Interest rates remain low, and the yield on the 10-year Treasury note ended Wednesday at 1.45 percent. Economists think the economy will grow 6.5 percent this year, which would be the fastest rate since 1984, according to data from FactSet.