These Stocks Will Rise After Black Friday

updated Oct 24, 2024

Retail Stocks

• Walmart (WMT) and Target (TGT): Both companies see high sales during Black Friday and the entire holiday shopping season. Walmart and Target often benefit from a strong in-store and online presence, appealing to budget-conscious shoppers.
• Best Buy (BBY): As a major electronics retailer, Best Buy sees a spike in sales during Black Friday, especially with discounts on high-demand electronics like TVs, computers, and gaming consoles.
• Macy’s (M) and Nordstrom (JWN): Traditional department stores often gain traction during Black Friday as consumers look for clothing, accessories, and holiday gifts.

2. E-Commerce Stocks

• Amazon (AMZN): Black Friday and Cyber Monday are two of Amazon’s biggest shopping days, with online sales reaching a peak as consumers prefer the convenience of e-commerce.
• Shopify (SHOP): As a leading e-commerce platform, Shopify hosts numerous small and large online stores that benefit from the Black Friday shopping surge. Its success during this period can boost its stock price.
• Etsy (ETSY): The online marketplace for handmade and unique items often experiences a surge in holiday season shopping, as consumers seek custom or one-of-a-kind gifts.

3. Consumer Electronics and Gaming Stocks

• Apple (AAPL): With high demand for Apple products like iPhones, iPads, and MacBooks, the holiday shopping season tends to boost Apple’s stock performance.
• Sony (SONY) and Microsoft (MSFT): Both companies benefit from strong sales of gaming consoles, especially the PlayStation and Xbox, and related gaming products.

4. Payment Processors

• Visa (V) and Mastercard (MA): Increased consumer spending leads to more transaction volume, which can boost the stock prices of credit card companies.
• PayPal (PYPL): As a major online payment processor, PayPal sees a surge in usage during the online shopping season.

5. Logistics and Shipping Stocks

• UPS (UPS) and FedEx (FDX): The rise in e-commerce orders during Black Friday and the holiday season increases demand for shipping and logistics services, benefiting companies like UPS and FedEx.

6. Technology and Consumer Discretionary Stocks

• NVIDIA (NVDA) and AMD (AMD): These semiconductor companies supply chips used in many electronic devices, from gaming consoles to laptops, all of which are in high demand during the holiday season.
• Netflix (NFLX) and Disney (DIS): Holiday sales also often coincide with increases in streaming subscriptions and media consumption, which benefits companies in the entertainment sector.

7. Discount and Dollar Stores

• Dollar General (DG) and Dollar Tree (DLTR): Budget-friendly retailers tend to see a strong performance as shoppers look for affordable gift options and holiday decorations.

Key Considerations

While these stocks generally perform well after Black Friday, remember that performance can vary due to economic conditions, consumer sentiment, inflation rates, and supply chain issues.

written by AdmaD

Black Friday is almost here, and with it comes the annual shopping bonanza that kicks off the holiday season.

The shopping weekend, which extends through Cyber Monday, isn’t just an opportunity for shoppers to get some of the best deals of the year on items like electronics, home goods, and toys. It’s also the biggest day of the year for retailers as the rush of gift-givers gives them a spike in business that they depend on to turn a profit.

This year’s holiday season is expected to be a big one. The National Retail Federation predicts holiday sales to increase by 3.8% to 4.2% from 2018 and total $727.9 billion to $730.7 billion. That’s better than the five-year average growth rate of 3.7% and comes after a weak showing in 2018 when holiday sales rose just 2.1% amid a stock market crash and looming government shutdown.

With the economy looking strong this year and the stock market at an all-time high, retailers of consumer discretionary products should be able to capitalize on Black Friday and the holiday season. Below are four stocks that look set to rise off their company’s performances this weekend.

1. Amazon

Black Friday still means “doorbuster” sales, but these days plenty of shoppers are doing their gift buying online, and for many, Amazon.com (NASDAQ:AMZN) is the first stop. The company has trained its customers to flood the site for big shopping events like Prime Day and Black Friday, and its Prime membership program cleverly locks in customers with a slew of benefits that would be difficult for any brick-and-mortar retailer to match.

There’s another good to reason to think that Amazon shares will get a boost from Black Friday and the holiday season. The company earlier this year said it would accelerate its standard Prime shipping speed from two days to one day, making the online retailer even more enticing for last-minute gift-givers. The tech giant said it would spend an additional $1.5 billion on shipping costs in the fourth quarter to make one-day delivery happen, but the move is likely to be a winner with customers who favor Amazon because of its fast shipping speeds, wide selection, and easy returns.

Last year, Amazon said Cyber Monday was its best shopping day ever, and this year is likely to see a repeat. Considering that the stock has underperformed the S&P 500 this year, a repeat success could send the stock climbing.

2. Best Buy

Best Buy‘s (NYSE:BBY) remarkable turnaround has been well documented as the retailer has made a stunning transformation into a relevant brick-and-mortar electronics operation in the e-commerce era. Best Buy is coming off a strong third-quarter performance with adjusted earnings per share rising 22% and a hike in its full-year earnings guidance. It’s not surprising that an electronics retailer is a popular destination on Black Friday. Best Buy sells a range of popular gifts, including televisions, smartphones, and video game consoles, and the company brings in more than one-third of its yearly revenue and about half of its profit in the fourth quarter.

However, you may be surprised to learn that Best Buy is the most-searched-for company for Black Friday, according to online marketing research data from SEMRush. The company also ranks No. 3 for Cyber Monday. According to Google Trends, Best Buy tops both Amazon and Target in searches this time of year, but not Walmart, the nation’s biggest retailer. Based on those statistics, Best Buy could see a healthy sales bump over the holiday shopping weekend, adding to the momentum from its third-quarter earnings report.