How To Cash In On Holiday Cheer—19 Retail Stocks To Buy
Analysts are forecasting a great year for Christmas sales. Thanks to a big drop in gasoline prices, a much improved job market, and other positive economic developments Americans are feeling more confident and optimistic about their financial futures than they have in years. This means they’ll be spending more than usual. If you are looking for new investments to get into, retail is the way to go.
There is no must-have item this year, no new gadget craze or fashion item to draw people into stores. Retailers will have to get people in the door by heavily discounting existing stocks. There will also be a greater push to sell online. These strategies are already being undertaken. And the stores selling athletic wear, accessories, toys, electronics, and video games are most likely to benefit from them.
Apple, Best Buy, Foot Locker, and Nike are among the names listed. Best Buy seems particularly poised to do well in the next month or so. A marked increase in Apple sales of its iPhone 6 will have a direct impact on the retail giant:
That kind of demand is expected to help lift electronics retailer Best Buy (BBY, $39). Already, the stock has climbed 25.3% over the past three months, thanks in part to improving sales of mobile devices and ultra-high-definition televisions. The retailer is in the midst of a turnaround, which makes its stock riskier than Apple. But you’re not paying too much: Best Buy shares trade at just 15 times estimated earnings for the fiscal year that ends in January 2016, compared with competitors such as Wal-Mart Stores (WMT), which trades at 16 times earnings for the same period, and Target (TGT), whose P/E is 19.
The whole of the article can be read here. It is not too late to cash in on Christmas cheer. You can always re-shuffle and re-prioritize your portfolio after you make as much money as you can from the end-of-the-year retail bonanza.
About Christopher Reid Chris was born in Washington, D.C. and lives in Britain. He works as a blogger, essayist, and novelist. His first book, Tea with Maureen, has just been published.