"The very tight relationship between economic surprises and the performance of cyclicals suggests cyclicals may soon make a comeback relative to more defensive sectors," said chief market strategist for LPL Financial, Jeff Kleintop.
Investment banks are also backing the move. Citi are now overweight cyclical stocks in Europe and underweight defensives such as chemicals, food & beverage, oil & gas and telecoms.
Citi said earnings momentum strategies have been working well so far this year, with autos, banks, basic resources and insurance the four sectors with positive relative earnings momentum over six months and trading on a price to earnings (P/E) discount to market.
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"Earnings momentum favors cyclicals over defensives. So do we," said Citi analysts led by Jonathan Stubbs in a research note.
"Generally, it is financial and cyclical -- rather than defensive -- sectors which have stronger earnings momentum trends. This is also how we are positioned in our European sector strategy," he said.
Stubbs noted that stocks such as Italian carmaker Fiat, Lloyds Banking Group, Societe Generale and Credit Agricole all look among the cheapest stocks, if take their long-term earnings momentum into consideration.
Goldman Sachs is also eyeing a pro-cyclical stance, following the downgrade to China growth. The volatility in emerging markets from December to mid- March had eased significantly from the shock the market saw from May to July 2013.
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"As a result, we think that cyclical improvement is likely to be the major theme in the next month or two as the reality of some improvement on these fronts is reflected more broadly," said chief markets economist at Goldman Sachs, Dominic Wilson.
"We think the reality of a better cyclical picture has not yet been fully priced. If we are right, the improving cyclical environment should continue to support equities, while pushing yields higher," he added.