Holiday Stock Picks: Playbook for the Season of Cheer

Stock Playbook for the Holiday Season

From retail to travel, here’s a breakdown of sectors and stocks expected to benefit from holiday spending:

Retail Giants

• Walmart (WMT): Captures holiday demand with affordable essentials and gifts.
• Amazon (AMZN): Dominates with its Prime ecosystem and Black Friday sales.
• Costco (COST): Appeals to bulk shoppers for holiday feasts and gifts.
• Best Buy (BBY): Benefits from strong demand for electronics and tech gadgets.

Specialty Retail

• Ralph Lauren (RL): High-end apparel and accessories for holiday gifting.
• Tapestry (TPR): Owner of Coach and Kate Spade, capitalizing on luxury trends.
• Abercrombie & Fitch (ANF): Trend-driven clothing for younger shoppers.
• Urban Outfitters (URBN): Unique offerings for Millennial and Gen Z shoppers.
• Lululemon (LULU): Popular athleisure brand with loyal customers.
• Gap (GAP): Affordable, stylish apparel attracts premium holiday shoppers.

Travel and Leisure

• Delta Air Lines (DAL): Increased travel demand drives higher ticket revenues.
• United Airlines (UAL): Stands to gain from the uptick in holiday travelers.
• Expedia (EXPE): Increased bookings for flights, hotels, and vacation packages.
• Marriott International (MAR): Popular for family reunions and holiday vacations.
• Airbnb (ABNB): Strong demand for unique stays during the holidays.
• Booking Holdings (BKNG): Robust bookings for global holiday travel.
• Carnival Cruise Lines (CCL): Experiential gifts boost cruise bookings.

Toys and Gaming

• Hasbro (HAS): Popular toys like Monopoly and Nerf drive seasonal sales.
• Mattel (MAT): Barbie and Hot Wheels remain top holiday picks.
• Electronic Arts (EA): Video games like FIFA are perennial favorites.
• Roblox (RBLX): Immersive gaming platform loved by kids and teens.

Streaming and Entertainment

• Netflix (NFLX): Tyson fight exclusive and strong original content should drive subscriptions.
• Disney (DIS): New movie releases and Disney+ offerings could boost revenue. Holiday travels could also boost theme parks. 

Credit Cards and Payments

• Visa (V): Higher transaction volumes during peak shopping.
• Mastercard (MA): Benefits from global holiday spending trends.
• American Express (AXP): Strong demand among affluent shoppers.
• PayPal (PYPL): E-commerce transactions surge during the holidays.
• Affirm (AFRM): Buy Now, Pay Later services drive holiday sales.

Health & Personal Care

• CVS Health (CVS): Positioned to benefit from increased demand for wellness products.
• Walgreens Boots Alliance (WBA): Continued demand for pharmacy and personal care.
• Bath & Body Works (BBWI): Holiday scents and gift sets boost sales.
• Procter & Gamble (PG): Household and personal care products see increased demand.
• Estée Lauder (EL): Holiday gifting boosts sales of premium skincare and cosmetics.

ETF Ideas for Broader Exposure

For investors looking to diversify, these ETFs provide targeted exposure to sectors poised to benefit from holiday spending:

• SPDR S&P Retail ETF (XRT): Tracks top U.S. retail stocks.
• iShares U.S. Consumer Staples ETF (IYK): Covers consumer staple goods.
• VanEck Video Gaming and eSports UCITS ETF (ESPO): Focused on the gaming and esports industry.
• Invesco Leisure and Entertainment ETF (PEJ): Offers exposure to travel and leisure.
• Global X E-commerce ETF (EBIZ): Captures the online retail boom.