10 Stocks to Invest in During the Holidays

By Tim Lemke on 24 November 2015 0 comments

If you've been out to the malls or shopped online recently, you'll be fully aware that the holidays are approaching.

For many companies, the months of November and December are make or break time. Retailers rely on holiday sales to hit revenue targets. Investors can take advantage of this holiday blitz by buying shares of those companies poised for an end-of-year boost.

Here are 10 stocks worth eyeing as the winter holidays approach.

1. Amazon [NASDAQ: AMZN]

The National Retail Federation is predicting online retail sales to jump 6%–8% this year. As the world's largest online retailer, Amazon will benefit from this perhaps more than anyone. It recently opened a "Black Friday Deals" store, with 30,000 deals available to Amazon Prime members.

2. Wal-Mart [NYSE: WMT]

Have you ever seen a Walmart store on Black Friday? Demand for deals places this top retailer in a position to cash in every year, usually to the benefit of shareholders. Wal-Mart's investments in online sales should pay off here, as well.

3. FedEx [NYSE: FDX]

Forget Santa and his sleigh — this company has found a way to really cash in on holiday sales. It saw package volume jump nearly 9% during last year's Christmas season, and it's getting better and better at delivering packages on time every year. With an increasing number of people shopping online during the holidays, FedEx is always poised to do big business this time of year. Look to competitor UPS [NYSE: UPS] to have a great holiday season, too.

4. Best Buy [NYSE: BBY]

I am not normally a big fan of investing in "big box" retail, but Best Buy usually does well this time of year as the go-to place for many of the most popular consumer electronics. And the company is being aggressive online as well, after announcing it will offer free shipping with no minimum purchase through the holiday. Best Buy is rolling out "Black Friday" sales as early as November 7. Can the costs of offering deep discounts and free shopping be offset by higher sales? Investors hope so.

5. Foot Locker [NASDAQ: FL]

This retailer has been on a tear in 2015, with shares up 25% on the year. In the last fiscal quarter, the company saw net income rise 29% over the same quarter a year ago. Analysts predict that the company will see a 17% rise in earnings for the year. A strong holiday season will make investors a very happy bunch.

6. Big Lots [NYSE: BIG]

Few multi-line retailers have had as good a year as Big Lots, with shares up 15% on the year. It's already getting buzz for its new "Black Friday Deals Every Day" campaign, and two new commercials. Analysts are predicting earnings to rise about 20% in 2015 when compared to last year.

7. Nike [NYSE: NKE]

The athletic footwear and sports equipment manufacturer had a great year and is expected to enter 2016 with a lot of momentum. Shares are up 40% on the year, and there's buzz about the company's sponsorship of next year's Summer Olympics in Rio de Janeiro. Nike announced it set an aggressive goal of $50 billion in annual sales by 2020.

8. Royal Caribbean [NYSE: RCL]

The travel industry often gets a bump around the holidays, as people find the time to get away to warmer climates. Shares of Royal Caribbean are near a 52-week high, as analysts recently predicted earnings would rise 37% in 2015 compared to last year.

9. Ross Stores [NYSE: ROST]

This discount retailer has been a consistent solid performer over the holiday season in recent years. Morgan Stanley reported that the stock price has gone up an average of 1.2% after every fourth quarter earning report dating back to 2010. Shares are already up 25% in the last 12 months, making Ross one of the better-performing retailers out there.

10. JetBlue [NYSE: JBLU]

Planes will be full during the holidays, and with oil prices at super-low levels, airlines should be pulling in solid profits. Consumer Reports recently rated JetBlue its top overall airline, giving the company some nice publicity heading into the heavy travel season. Shares of JetBlue have more than doubled in value this year.

How will you plump up your portfolio this holiday season?

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