Christmas shopping ahead: Amazon shares, Walmart shares & Co.: Investors can benefit from the Christmas shopping frenzy with these seven US stocks | news
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• Inflation is unlikely to slow US consumers’ appetite for holiday shopping
• Retail giants such as Amazon, Walmart or Best Buy should benefit
• Profits could also bubble up at companies from other sectors
The highest inflation rates in forty years, rising interest burdens, the risk of recession, high energy prices – reports of economic crises were currently dominating the international headlines. Actually not a good time for extensive Christmas shopping tours, one would think. But the consumerism of the Americans seems to be unbroken.
Record Christmas shopping ahead?
Experts assume that this year’s Christmas shopping season in the USA will by no means disappoint retailers, despite the signs of a recession. On the contrary: Deloitte even expects a new sales record. According to the study by the American auditing and consulting company, retail sales will be between USD 1.45 trillion and USD 1.47 trillion from the end of November to the beginning of January – this would correspond to an increase of 5 percent compared to 2021. The study expects that in This year’s Christmas business, e-commerce sales in particular will increase sharply: Deloitte is forecasting growth of 12.8 percent to 14.3 percent compared to the same period last year. The company even thinks e-commerce sales could top $260 billion for the first time.
How can investors in Germany also benefit from the unbroken US shopping frenzy? By investing in companies that are benefiting disproportionately from the fourth-quarter shopping frenzy, according to Investor Place’s Joel Baglole. He recommends buying the following seven US stocks.
Walmart: Retail giant lures with low prices
Walmart is the largest employer in the world: 2.3 million people work for the supermarket giant, which has a wide range of fruit and vegetables, clothing and consumer electronics. In addition, Walmart impresses with its low prices, which should have a positive effect on the demand for Walmart products in view of the considerable loss of purchasing power of many consumers. In order to get the holiday season off to an early start, Walmart has been offering price reductions and expanded return options since October. So Walmart is well-positioned for a booming holiday season, which should give Walmart’s stock, which has been doing quite well recently, a further boost.
UPS: Parcel shipping enters the hot phase
UPS is the world’s largest package delivery company with annual sales of $85 billion. To prepare for the holiday season with the expected flood of packages, UPS announced in September that it would hire 100,000 additional employees. It is true that Amazon represents ever greater competition for UPS because the digital giant is sending more and more packages itself. Nevertheless, UPS remains the industry leader and thus one of the main beneficiaries of the shopping boom around Christmas. Meanwhile, UPS shares have been in a constant downward spiral for months, but are still trading well above pre-Corona levels.
Amazon: Black Friday brings the digital giant billions in revenue
Amazon is certainly one of the first companies that comes to mind when asked about the alleged beneficiaries of the Christmas shopping craze. In fact, the fourth quarter is traditionally the most successful quarter for the digital giant, as shopping events such as Black Friday and Cyber Monday fall in this period. The Amazon group also desperately needs high profits in the fourth quarter to brighten the sentiment around the retail giant that has been tarnished for months. Shares have now more than halved since the record high set in 2021.
CVS Health: More than just a pharmacy chain
Along with Walgreens Boots Alliance, CVS Health is one of the best-known pharmacy chains in the USA. But CVS Health offers much more than ibuprofen & Co. CVS now has more than 10,000 retail chains for chocolates, gifts and other items. Third-quarter CVS store sales were up 7 percent year-over-year (CVS’s overall store up 10 percent) and should benefit from the holiday season in the fourth quarter. Additionally, December is the start of cold and flu season, which should benefit CVS Health’s pharmacy business. Incidentally, the CVS share has performed better than the overall market in the current year and is only slightly in the red.
Southwest Airlines: Travel boom gives the airline a sales boost
Southwest Airlines has one of the largest aircraft fleets in the world and traditionally benefits from the high volume of travel around the holidays. According to “Investor Place”, about 70 percent of Americans plan a longer trip to visit friends and relatives at Thanksgiving or Christmas. Southwest Airlines is the largest low-cost airline in the USA and is likely to attract many price-conscious customers, especially in the gloomy macroeconomic market environment. Southwest Airline also announced that it intends to hire around 3,000 new pilots by the end of 2023 in order to optimize capacity utilization. Positive impulses could give the airline shares a boost – they are currently still trading well below their pre-corona level.
Best Buy: Consumers are feverishly awaiting Black Friday at the retail giant
Alongside Amazon, Best Buy is also one of the most sought-after addresses on Black Friday and the following Cyber Monday. As a supplier of consumer electronics such as smartphones, video game consoles and Ultra High Definition (UHD) televisions, Best Buy attracts numerous bargain hunters every year. The Christmas shopping season at Best Buy started in October. Another clever move by Best Buy is the “Member Mondays”, which increase customer loyalty thanks to exclusive offers. So, overall, Best Buy is well positioned for the holiday season, which could give a boost to its recently penalized stock.
Molson Coors: High alcohol consumption at Christmas gives brewery a boost
Molson Coors is based in Chicago and is one of the largest breweries in the world. The average American doubles his alcohol consumption between Thanksgiving and New Year’s, drinking eight drinks a week compared to four during the rest of the year. Molson Coors, the third-largest maker of alcoholic beverages in the world, can always look forward to particularly high earnings in the fourth quarter of each year. Bubbling profits in the Christmas quarter should therefore also give Molson Coors shares a further boost, especially since they are currently showing good momentum. In contrast to most other securities, they are listed in the profit zone over the year.
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