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12 Stocks Set To Soar
From Holiday Shopping
These investments could be gifts that keep on giving.

A quick search of hot Christmas stocks will consistently return a few of the same familiar names. Analysts and investors of all stripes are sweet on Amazon, Best Buy, Walmart, UPS, and FedEx – and for good reason. Those big-name bandwagon stocks are in a good position to thrive during the world’s first post-pandemic winter holiday season, notes award-winning writer Andrew Lisa, in an article posted on www.gobankingrates.com.

They are not, however, in a class by themselves. The secret is not yet out on several underrated, unsung companies whose investors might be smiling just as widely come 2021 as those who bought into the biggest retailers in the game, says Lisa.

It should be noted that every investment comes with risk and there’s no such thing as a guarantee on the stock market, but there are plenty of clear indications that a few stocks listed here are poised to make big gains this winter, says David Lisa.

Here are his 12 Stocks of Christmas that are directly tied to holiday shopping. TipRanks.com provides the analyst ratings data.

1800FLOWERS.com

One of the biggest names in online flower and gift delivery, 1800FLOWERS.com (Nasdaq: FLWS) is preparing for what it expects to be a substantial increase in holiday demand. Much of the reason has to do with the pandemic – 1800FLOWERS’ sales increased from the outset of the virus crisis. That’s because shoppers looking for an easy, thoughtful gift that wows know the famous florist’s number by heart.

In preparation, the company has increased seasonal hiring by 25% over last year. Its 10,000 new holiday workers – one in 10 of which are telecommuting positions that didn’t exist in 2019 – will quadruple the company’s workforce in the short term.

TipRanks: Based on 3 analysts offering 12-month price targets for 1800Flowers in the last 3 months. 2 analysts rate FLWS a “Buy” and one a “Hold.” The average target price is $32.00 with a high forecast of $37.00 and a low forecast of $24.00.

Amazon

Amazon (Nasdaq: AMZN) has been one of the great stocks of the 21st century and has served as the basis for countless tantalizing articles about how massive your fortune would be now if you had put up just a few grand in the beginning. The world’s largest online retailer has, of course, proven its worth and adaptability. And with a busy and mostly online holiday season expected, potential investors have all the incentive to jump in now. Another reason that Amazon is poised for a big win over the holidays is the success it just had with its own holiday. Sales on this year’s Amazon Prime Day grew by 60% over last year.

TipRanks: Based on 37 analysts offering 12-month price targets for Amazon in the last 3 months. 36 analysts rate AMZN a “Buy” and one a “Hold.” The average target price is $3,819.89 with a high forecast of $4,500 and a low forecast of $3,048.00.

Big Lots

The Big Lots (NYSE: BIG) business model has many analysts expecting a strong showing from the company’s stock this holiday season and beyond. First off, it’s a discount retailer that specializes in bulk sales, a formula that’s custom-made for an era defined by financial uncertainty and anxiety. Another attractive facet is the Big Lots strategy of purchasing struggling smaller retailers for profit – and thanks to the COVID-19 crisis, there are plenty of small retailers for Big Lots to gobble up and plenty of profits to be had.

TipRanks: Based on 6 analysts offering 12-month price targets for Big Lots in the last 3 months. 3 analysts rate BIG a “Buy” and 3 a “Hold.” The average target price is $67.83 with a high forecast of $95.00 and a low forecast of $55.00.

Chewy

Americans spent a record $95.7 billion on their pets in 2019, so the trend toward pet spending was already in Chewy’s (NYSE: CHWY) favor before the pandemic. Then came the shutdown, which led to a massive uptick in dog and cat adoptions, presumably to help keep lonely and comfort-hungry shut-ins sane during the quarantine. That, naturally, led to an even greater explosion in pet-related purchasing which continues to unfold as the holidays approach. That trend, combined with a dramatic increase in online buying, positions the $26 billion pet giant that is Chewy to harvest a huge windfall over the holidays.

TipRanks: Based on 14 analysts offering 12-month price targets for Chewy in the last 3 months. 10 analysts rate CHWY a “Buy” and four a “Hold.” The average target price is $72.36 with a high forecast of $100.00 and a low forecast of $49.00.

Dollar Tree

Dollar Tree (Nasdaq: DLTR), which also owns Family Dollar, has underperformed on the year. That has kept the stock’s price below $95 – a deal that’s too good to pass up for many industry watchers. Analysts predict the stock’s value will rise over the holidays because they expect to see a large increase in consumer demand for inexpensive household products, much of which is directly linked to pandemic-related financial uncertainty. Also, the company has invested heavily in upgrading, improving and expanding the struggling Family Dollar chain.

TipRanks: Based on 17 analysts offering 12-month price targets for Dollar Tree in the last 3 months. 10 analysts rate DLTR a “Buy” and 7 a “Hold.” The average target price is $121.33 with a high forecast of $140.00 and a low forecast of $100.00.

Etsy

Few companies have benefited more from the rise of e-commerce than Etsy (Nasdaq: ETSY), a trend that has only accelerated in recent months. But Etsy has something going for it that few other online selling platforms can match. It specializes in handmade items that individuals sell through their personal shops. With millions out of work, strapped for cash and trapped at home, legions of new side hustlers have learned to turn their hobbies into part-time gigs – and many of them have turned to Etsy as their platform of choice. Etsy’s revenue increased 136.7% year over year, and moving into the holidays it has a rare competitive advantage: You simply can’t get the stuff it sells anywhere else.

TipRanks: Based on 12 analysts offering 12-month price targets for Etsy in the last 3 months. 11 analysts rate ETSY a “Buy” and one a “Sell.” The average target price is $156.83 with a high forecast of $170.00 and a low forecast of $74.00.

FedEx

At the end of October, FedEx (NYSE: FDX) shareholders celebrated when the transportation and shipping company reached an all-time high of $293.30 – a number that represented gains of 90% on the year. The stock has fallen back to Earth a bit since then, but shares are still pricey. Even so, many analysts think that the best is yet to come. The reason is self-explanatory: The COVID-19 crisis created a massive surge in online buying that is all but certain to extend through the season and FedEx delivers many of the packages that people buy and sell online.

TipRanks: Based on 23 analysts offering 12-month price targets for FedEx in the last 3 months. 19 analysts rate FDX a “Buy” and four a “Hold.” The average target price is $302.81 with a high forecast of $372.00 and a low forecast of $250.00.

iShares Transportation Average ETF

There’s nearly universal consensus that shipping companies will prosper this holiday season, but you might be hesitant to put all your eggs in one basket. If diversity is important to you, you can own UPS, FedEx and many other well-known shippers with this exchange-traded fund, including Union Pacific, Norfolk Southern, Kansas City Southern and more. The iShares Transportation Average ETF (BATS: IYT) allows you to buy into all the big dogs in an industry poised for success at the same time with a single stock purchase.

Nike

Nike (NYSE: NKE), of course, needs no introduction, but the footwear and apparel giant is making moves that have money managers urging their clients to get their hands on Nike stock. First of all, Nike has made a huge and successful effort to dramatically improve its digital presence from the very beginning of the pandemic. The result has been an 82% increase in year-over-year digital sales – Nike now is ready to cash in on the holidays. It just launched its highly anticipated Jordan Brand Holiday 2020 Winter Utility Collection and is set to release its equally hyped Kyrie Irving Signature Collection.

[Ed. Note] NIKE recently announced a 12% increase in its quarterly cash dividend to $0.275 per share. The announcement marks NIKE’s 19th consecutive year of increasing dividend payouts.

TipRanks: Based on 26 analysts offering 12-month price targets for Nike in the last 3 months. 24 analysts rate NKE a “Buy” and 2 a “Hold.” The average target price is $145.92 with a high forecast of $165.00 and a low forecast of $115.00.

Overstock.com

The pandemic has been a blessing – financially, at least – for Overstock.com (Nasdaq: OSTK) shareholders. The company was dying on the vine before the virus emerged. Its value was whittled down to less than $5 per share. After the market hit rock bottom in March, however, Overstock skyrocketed by an astonishing 5,000%. Those who didn’t sell at that peak watched much of those gains dwindle, but on the year, the company is still up more than 1,000% with plenty of room to grow when Santa comes to town.

TipRanks: Based on 4 analysts offering 12-month price targets for Overstock.com in the last 3 months. 4 analysts rate OSTK a “Buy,” The average target price is $106.75 with a high forecast of $140.00 and a low forecast of $91.00.

The TJX Companies

The TJX Companies (NYSE: TJX) include Sierra Trading Post, HomeGoods, HomeSense, Marshalls, and TJ Maxx. TJX has a unique business model that has endured through the roughest patches in the past and seems almost designed to thrive in 2020.

The company buys inventory at bargain-basement prices from failing retailers. TJX gets goods at such a discount, in fact, that it can sell them cheaper than Amazon while still turning a handsome profit. The strategy has been responsible for 24 consecutive years of gains, even as TJX competitors went bankrupt all around it. Plus, with financial anxiety never far away from the pandemic, Wall Street expects shoppers to flock to discount products like the kind found at TJ Maxx, Marshalls, and the rest of the stores owned by TJX.

TipRanks: Based on 14 analysts offering 12-month price targets for The TJX Companies in the last 3 months. All 14 analysts rate TJX a “Buy.” The average target price is $71.08 with a high forecast of $75.00 and a low forecast of $64.00.

UPS

Right now, UPS (NYSE: UPS) is positioned as a classic momentum stock – the kind you buy when it’s high and sell when it’s higher. The company just turned in its second straight amazing quarterly report and many industry-watchers expect the gains to keep piling up when the holidays roll around. The optimism is largely for the same exact reasons FedEx looks like such a good investment – holiday shopping will be done mostly online this year and UPS deliveries will get many of those gifts from point A to point B.

TipRanks: Based on 15 analysts offering 12-month price targets for UPS in the last 3 months. 11 analysts rate UPS a “Buy,” one a “Hold,” and 3 analysts a “Sell.” The average target price is $180.36 with a high forecast of $210.00 and a low forecast of $130.00.

Editor’s Note: GOBankingRates.com features a team of financial experts, writers, editors, researchers and video producers who create content to help you manage your money better, find more ways to save and make money, and understand changes in the world that can directly affect your wallet – all in a way that’s easy to understand and informative.

TipRanks.com is the most comprehensive dataset of analysts, hedge fund managers, financial bloggers, and corporate insiders. TipRanks allows private investors and day traders to see the measured performance of anyone who provides financial advice.

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