As we approach the festive season, the investment landscape presents unique opportunities, particularly in retail. Post-COVID-19, stores are back in full swing, complemented by robust online capabilities. Americans are anticipated to splurge around $1,500 on average for Christmas-related expenses. Coupled with the anticipated ‘Santa Rally’, a period of increased stock market activity during late December and early January, this season is ripe for strategic investments.
Here are nine stocks to consider for your Christmas investments, ranked from the most affordable to the priciest based on current stock prices:
1. The Children’s Place (PLCE)
- Ticker: PLCE
- Price: $20.15
- Market Cap: $252.95 million
Despite financial challenges in 2022, The Children’s Place has shown resilience with an uptick in online sales. This resilience, combined with its affordability, might offer a unique investment opportunity this holiday season.
2. Marks and Spencer Group (MAKSY)
- Ticker: MAKSY
- Price: $6.24
- Market Cap: $6.17 billion
With a diverse range of products and services, Marks and Spencer’s affordable stock and international presence make it an intriguing choice for investors.
3. Signet Jewelers Limited (SIG)
- Ticker: SIG
- Price: $76.95
- Market Cap: $3.67 billion
Signet’s portfolio of renowned jewelry brands positions it well for holiday gifting, making its stock an attractive choice for investors seeking value in the luxury segment.
4. Etsy (ETSY)
- Ticker: ETSY
- Price: $71.82
- Market Cap: $8.6 billion
Etsy’s unique marketplace, focusing on handmade and bespoke items, offers a differentiated investment option in the e-commerce sector.
5. Dollar Tree (DLTR)
- Ticker: DLTR
- Price: $117.32
- Market Cap: $25.811 billion
Dollar Tree’s resurgence in the discount retail sector, combined with its robust performance in 2022, positions it as a potentially rewarding investment.
6. Target Corporation (TGT)
- Ticker: TGT
- Price: $131.19
- Market Cap: $60.564 billion
Target’s strategic expansion and online growth initiatives make it a strong contender in the retail space, especially during the holiday shopping surge.
7. Amazon.com (AMZN)
- Ticker: AMZN
- Price: $146.74
- Market Cap: $1.516 trillion
Amazon’s dominance in online retail and its impressive holiday sales make its stock a compelling choice for investors eyeing the e-commerce giant.
8. Walmart (WMT)
- Ticker: WMT
- Price: $155.71
- Market Cap: $419.103 billion
Walmart’s expansive retail network and growing e-commerce presence underpin its stability and appeal as a holiday season investment.
9. Williams-Sonoma, Inc. (WSM)
- Ticker: WSM
- Price: $182.96
- Market Cap: $11.734 billion
With a significant footprint in the online home goods market, Williams-Sonoma offers an investment avenue into the upscale retail sector.
Investing During The Holidays
The anticipated Santa Rally suggests potential gains, but it’s vital to conduct thorough research and consult with a financial advisor before investing. The stocks listed offer a blend of retail giants and niche players, catering to various investment strategies and risk appetites.
Frequently Asked Questions:
What should I invest in before Christmas?
Consider retail companies poised for holiday sales boosts, such as Amazon, Target, and Walmart. Align your choices with your investment goals and consult your financial advisor.
Do stocks go up or down during Christmas?
Historically, December has witnessed positive stock market outcomes 74% of the time since the 1970s.
Do stocks tend to increase during Christmas?
The Santa Rally phenomenon often leads to stock market increases during Christmas, although it’s not a guaranteed outcome.
Which stocks go up for Christmas?
Retail stores with strong Black Friday sales often fare well. However, predicting exact stock movements requires analyzing broader economic conditions and individual company performance.