Here are some trading and investing ideas for the upcoming holiday season.
Holidays are special times, which we would like to spend with our family. Everyone wants to surprise their loved ones and give presents to make them happy. This creates amazing opportunities for some companies to benefit and raise their sales. However, regular people can benefit from holiday shopping sprees as well. Here are some stocks that we think will gain and potentially make investors great returns on their investments shortly after the holidays.
- Amazon / Ticker: AMZN
Pandemic has driven more and more people to shop online and Amazon has been one of the biggest winners. However, this holiday season will be even better for the company. According to Adobe analytics people have already spent more than $9 billion on the web during thanksgiving and Black Friday, which is 21% up since last year. We are waiting for sales to be up drastically during Christmas and new year worldwide as well. This kind of revenue will show itself in the next earnings report and 46 analysts offering 12-month price forecasts for Amazon.com Inc have a median target of $3,800, with a high estimate of 4,500 according to CNN. Analysts are usually modest, however, even they are forecasting almost 50% upside potential for the stock. We truly believe early investors hopping on the AMZN stock train won’t be disappointed.
- First Trust Nasdaq Retail ETF / Ticker: FTXD
Amazon won’t be the only winner from an increase in holiday spending. Other e-commerce and retails stocks are poised to benefit greatly as well. If you’ll google top stocks for holidays you’ll encounter big names such as Walmart, eBay, Target, Costco, Etsy … and other retail stocks like that. However, you don’t need to have hundreds of thousands of dollars to build up a portfolio consisting of e-commerce and retail stocks. You can simply invest in First Trust Nasdaq Retail Exchange-traded fund which will give you exposure to all the up-mentioned stocks including Amazon and the great upside potential that they have. One more benefit of ETF is the great diversification ability that it gives you so you don’t have to put all of your eggs in just one basket. If you’d like to read more about what ETFs are click here. FXTD has gone up only 16% this year so it has a much bigger room to grow compared to the whole stock market because it will not only be benefiting from Holidays but from vaccines as well.
- Shopify / Ticker: Shop
Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario that helps other brands create an online presence. Usually, during the holiday season, Shopify works with hundreds of thousands of businesses to help them prepare for the annual shopping rush. This year, they will be partnering up with much, much, much more companies. Because of pandemic and indoor dining shattered giant companies like Heinz, Chipotle, Schwinn will be working with Shopify for the first time to establish an online presence. Every business, small and large is rushing to create ways to benefit from online sales during this holiday season and Shopify will definitely be benefiting greatly from this. Shopify’s stock has gone up more them 150% this year, however, we still believe there is room to grow.
- Global X Video Games & Esports ETF / Ticker: HERO
One of the biggest winners because of the pandemic and lockdowns have been video game companies. Companies such as Blizzard Activision, Electronic Arts, Ubisoft … etc have been going up like crazy, however, there are new waves of lockdowns all over the world, plus add new year holidays and a lot of free time that people will have to this mix and you will get a winning strategy for Video Game Stocks. There are many companies in this industry however you can get exposure to all of them by investing in just one fund called: HERO. It includes not only companies that are making games but also stocks such as NVIDIA, gaming hardware manufacturer that will be gaining during holidays as well. HERO has more than $4 billion under management. It has gone up almost 75% year to date.