There is always a shift in sales of stocks in festive seasons and holidays, particularly Christmas. Stocks’ retail sales increase on holidays. This is due to the tendency of people to spend hugely on gifts and related items. Holiday sales are expected to generate massive gains in a short period during this upcoming holiday season. This short-term investment strategy fits investors looking for short-term capital investment appreciation.
Holiday sales are set to increase at least by 11% in 2022 and 7% yearly in years to come. Stocks expecting massive sales include jewelry, clothes, food, electronics, and other small company stocks and penny stocks, to boot.
This festive season, make your capital investment a worthwhile investment by considering investing in Paypal, Affirm, Amazon, Carter’s, Best Buy Co Inc., and Frontier Airlines. This article will guide you on the best stocks to buy before Christmas period to realize maximum returns – see also stocks to buy now – though you can always get a robo advisor to help you make an investment plan during this season.
Stocks to Invest in Before Christmas Holiday Season-Benefits
Investing in the stock market during Christmas and other holidays is an excellent investment strategy. This short-term investment can yield maximum returns besides them having low risk, which is quite opposite from the significant risk attached to day trading. Buyers and shoppers spend more during the festive seasons buying supplies and gifts for their loved ones. Besides, the majority of them spend a lot on vacation supplies, entertainment, and outfits. Knowing where buyers spend more during this Christmas period is a crucial determinant of the best stocks to invest in. The increase in sales of these items means the trade volume of the subject stocks will rise. Therefore, you can easily buy stocks and dispose of them after a short period to realize a profit.
What Are the Top Stocks to Invest in Before Christmas?
Yes, Christmas periods experience a boom as far as the stock market is concerned. This is a general trend, but different stocks perform in different scales during such periods. You should, therefore, identify the stocks that are bought in volumes before identifying the ones to invest in.
Below we provide a list of the best company stocks to invest in during this Christmas period. Consider one of them to realize the best returns worth your cash.
1. TJX Companies
Despite the TJX Companies being less popular, they are a company you can rely on for your Christmas gifts. This company incorporates HomeGoods, TJ Maxx, HomeSense, and Marshalls, which trade like a single stock. The said companies offer huge discounts on their miscellaneous and home supplies. They both have a wide range of products ideal for Christmas gifts. A good reason to invest in TJX companies is their semi-cult following.
Another reason that TJX Companies is one of the best Christmas stocks is that at least one of its brands has a semi-cult following. If you’ve ever met someone who shops at TJ Maxx, then you know that most people gush over it.
2. Best Buy Co Inc (NYSE: BBY)
Best Buy Co Inc was in the blink of collapse until its 2010 revival. Amazon was about to overpower and kill Best Buy. It maintained competitive prices, prioritized its employees, and fixed its broken business systems. The company’s management also took the shortest time possible to adapt to the changing conditions in business operations. Another factor that ensured the survival of this company is the ability of customers to compare items before buying them at competitive prices, unlike in Amazon.
This is a stock to invest in for your electrical entertainment and supplies this Christmas holiday. The company stocks retail at competitive and affordable prices. Besides, it offers discounts and incentives to its highly valued customers.
3. Amazon (AMZN)
Amazon is a major retail industry dealing in retail stocks. It is one of the greatest stocks as far as the 21st century is concerned. Despite facing low business returns in the current year, its sales and returns forecast show a boom in the Christmas period.
Wall Street statistics show that this stock is a strong buy. It has an 18% growth potential. But, if you’re going to invest in this stock, you should not forget about the fourth quarter. The stock is ideal for both short-term and long-term investment and will therefore be ideal for your Christmas stock investment.
4. Carter’s (CRI)
Cater’s is a brand dealing in kid’s clothing and accessories. This brand became popular after it did away with discount retailers, including TJ Maxx. This move ensured they kept their full-price valued partners fully stocked. The long–term effect is that customers shift in huge numbers from budget stores to start shopping at Carter’s. The increase in sales in Carter’s meant its shareholders realized an increase in shares and returns.
Over the last two quarters, this stock’s performance was 382.64% above the estimated value. And with the onset of the Christmas festive, more shoppers are likely to shop for their kids’ new clothes. This will further boost the revenue of the stock, and you, as investors or brokerages, get a boost in dividend payment and appreciation in capital investment.
5. PayPal (PYPL)
Paypal has been one of the best-performing companies in recent years. The company’s share price has risen more than 200% in a span of four years; what comes to your mind when hearing that such a company is on sale. This is probably one of the best stocks you can invest in as we approach the Christmas period. These stocks are low-risk stocks with a promised positive return on investment. This company works by enabling payment transactions amongst other business dealings.
The start of November saw PayPal shares fall in excess of 12% a day. This is the worst record of the company for almost two years. This value represented up to 20% down the average monthly value and up to 30% of the company’s highest record. Analyses expect the Paypal stocks to boom in Christmas festive season. It is a strong company with an established reputation in the holiday shopping season. In addition, PayPal has increased its registered accounts by 13 million more accounts. This stock will, therefore, be a good investment to opt for.
6. Frontier Airlines (ULCC)
What else do you expect of the Christmas festive season other than vacations? More people set aside holidays for vacations and things of the sort. The airline industry experiences huge gains in these holidays due to a huge traffic turnout and many vacation bookings. The Covid-19 period saw a massive vacation cancellation and postponements due to the Covid-19 compartment measures put in place by the various federations. With the lifting of Covid-19 restrictions, the number of trips and vacations being canceled has been reduced. In addition, more people are traveling for leisure during the festive season.
During Christmas, stock price hikes are a common trend in the airline industry. A hike in the price of stocks means that the value of such stocks goes up. This means that their capital investment appreciates, and they get high chances of earning higher returns.
Frontier Airlines‘ buy consensus rating is strong and has an upward potential in excess of 30%. The company added 91 more Airbus aircraft to its stock. The company reported more profits while at the same time expanding its stock. The company generated $570 million from the sale of 30 million shares.
7. Affirm (Nasdaq: AFRM)
Affirm is the best stock to buy at Christmas for gifts. Christmas comes with its expenses as people treat themselves and buy gifts for their loved ones. The accumulation of budgets, responsibilities, and the general nature of this festive season usually leaves some shoppers in debt after the end of the Christmas festivals.
Holiday shoppers with insufficient funds pay off their debts using their credit cards. However, with the emergence of Affirm Usually, such shoppers can do their transactions and finance their purchase at the checkout; no need for a credit card. Literary, the company operates on a buy now pay later basis. You buy and then pay the amount you owe in installments over the next few months after the Christmas holiday.
The consumer spending payments are spread over three months. Over this period, you’ll only need to pay the agreed cost of your purchase. However, when the three months lapses, you’ll have to pay interest.
Many people may not have known about Affirm. It is not a popular company because it just went public in late 2021. Among its strongholds that also made the company reputable is the partnership deal, they entered with Amazon. Amazon shoppers should take advantage of Affirm to finance the purchase of their Christmas gifts. Shoppers’ traffic turnout is expected to be high. This improves the stock value, makes an impressive growth, and would, therefore, be a worthwhile investment during this Christmas season.
The Bottom Line
Christmas always comes with a change in activities and how people trade. Many shoppers shift to jewelry, outfits, and electronics meant for entertainment, and so on. Many people also take advantage of this time to go on vacations. By doing so, they travel a lot from a location to another. The various sectors involved in this holiday season usually experience a boost in their stocks. For instance, the tendency of people to travel a lot during this time allows the airline industry to improve its stocks. Companies dealing in outfits and other gifts also see a boom in the performance of their stocks.
You should choose a stock from any of the companies dealing with items mentioned in this article. A point to note is that the company you choose (see also Canada Nickel) should have stable stocks and lower risks potential. Make your short-term investment today!