• Basic Membership Access to Journal, Shadow Stock portfolio & monthly updates for stock screens
  • A+ Investor Full access to AAII.com, Journal, and a power data suite for investment ideas
  • AAII Platinum Full access to all of AAII's model portfolios and premium services at a significant discount
  • Dividend Investing Newsletter and model portfolio that focuses on dividend growth
  • AAII Growth Investing Find secular growth stocks poised for outperformance regardless of macroeconomic conditions.
  • Retirement Investing Discover trusted strategies for every stage of retirement. Get actionable insights and resources for smart retirement planning.
  • Sentiment Investing A research-driven newsletter with 10+ signals decoding sentiment across retail and institutional behavior.
  • Stock Superstars Report Get stock ideas inspired by the market's leading professionals
  • VMQ Stocks For the value investor looking to harness academic research in an actively managed portfolio
  • Bits and Bips Newsletter delivering insights on linking traditional finance, macro trends and cryptocurrency opportunities to help investors build stronger, more diversified portfolios.
All premium products come with free basic membership.
Explore All Membership Options
Join Now
First Cut Stocks

A Sample Pack of Stocks That May Benefit From the Holiday Season

With the holidays right around the corner, this month’s First Cut highlights stocks from the retail, food and transportation industries.

by Matt Markowski | November 2022

With the holidays right around the corner, this month’s First Cut highlights stocks from the retail, food and transportation industries as I get excited to stuff my face on Thanksgiving and hope to escape the dreaded Chicago winter. Below are some of the biggest companies that may benefit from my and others’ increased holiday spending.

Thanksgiving happens to be my favorite holiday of the year because of the food, family and football. As my family prepares to cook a wonderful meal, we find ourselves at local grocery stores that are part of the Kroger or Albertsons chains. (The two announced a merger agreement shortly before we finalized this month’s issue.) More important than the stores we shop at is the producers of all the food that we buy to enjoy over the holiday season. I’ve selected some of the largest food producers in the U.S., such as Tyson Foods and Kraft Heinz—and, of course, I can’t forget Anheuser-Busch to supply drinks for the affair.

And what better way to work off some of that turkey dinner than to get out of the house and shop all day for Black Friday. Many retailers benefit from this influx of customers, especially retail giants like Best Buy, Macy’s and Target. After the weekend, I would seek out the warmth of the fireplace and catch Cyber Monday deals on Amazon.com.

As the snow begins to fall over Chicago, I immediately plan my escape to Mexico by analyzing flight prices on the five largest U.S. airlines. The top two are American Airlines and Delta Air Lines. I’m also going to throw in Uber and Lyft as a means of transportation to the airport.

The table below highlights the companies that may benefit from increased holiday spending. Most are either leaders or are among the biggest players in their respective industries. The 20 stocks are ranked within their industry from low to high by their forward price-earnings ratio, which divides the current stock price by the consensus expected earnings for the company’s current fiscal year.

20 Thanksgiving Holiday-Themed Stocks (Grouped by Industry and Ranked by Forward Price-Earnings Ratio)

Discussion

BARRY J from TX posted over 3 years ago:

Matt, thanks for doing the research, analysis, and getting our choice set down to 20. Thanks for sorting them by industry. That makes it much easier to compare performance within the industry. This table is timely for short-term investors. Long-term investors will like some of the P/Es. Other "off table" factors may give a boost to some, if not most, of these 20. For example, the 11/8 election outcomes, likely Fed Putts in sooner than later (maybe starting 12/22), and the beginning of the Growth phase of a new business cycle in early 2023. As Jake said to Brett in "The Sun Also Rises," "Isn't it pretty to think so."


You need to log in as a registered AAII user before commenting.
Create an account

Log In

Get your free copy of our special report analyzing the tech stocks most likely to outperform the market.
Download the FREE Report Here: