Christmas 2020: 5 Stocks To Explore Ahead Of Holiday Season

Summary

  • Canada’s online retail sales jumped to C$ 36.2 billion between March and September 2020.
  • About 90 per cent of Canadians feel that it is important to shop from local retailers, found a Retail Council of Canada survey.
  • Stocks of Shopify, Amazon, Cargojet, BlackBerry and Aphria have noted a boost in their performance this year.

December is here and so is another holiday season. Celebrations are set to be smaller and much muted this year, due to the coronavirus pandemic. But the hope of COVID-19 vaccines coming to Canadians soon is also helping cheer things up a little bit for households as well as businesses.

A recent survey conducted by the Retail Council of Canada (RCC) found that about 90 per cent of Canadians feel that it is important to shop from local retailers, while 83 per cent think buying Canada-made products is also key.

On the other hand, a Statistics Canada report noted that online retail sales jumped from C$ 21.5 billion in 2019 to C$ 36.2 billion this year between the months of March and September.

Since shopping is such a vital aspect around this time of the year in Canada, let’s look at two shopping-related stocks.

ECommerce Stocks For This Holiday Season

Stocks of Amazon Inc (NASDAQ: AMZN, AMZN:US) have been soaring through the pandemic season, given the rise in online orders amid the social distancing protocols. The scrips zoomed nearly 72 per cent this year and about 26 per cent in the last six months.

Currently priced at US$ 3,177.29, Amazons stocks witnessed an average trading volume of 3.6 million in the last 10 days and 4.67 million in the past month.

The Silicon Valley tech giant saw a 56 per cent year-over-year (YoY) rise in its operating cash flow of US$ 55.3 billion in its third quarter ending 30 September 2020. Its free cash flow also climbed to US$ 29.5 billion in Q3 2020, while its net income shot up to US$ 6.3 billion.

Speaking of online shopping, the Canadian homegrown network of Shopify Inc (TSX: SHOP) has also seen quite a boom in business amid the coronavirus outbreak.

Stocks of Shopify Inc are currently trending high on the TSX for their high price gains over the past month. This year, its stock price has grown over 173 per cent.

Shopify stocks shot up almost 45 per cent in the last six months and about 16 per cent in the last three months. In December so far, they are most trading flat.

The shares are currently priced at C$ 1,411.9.

Given the boost in its business during the pandemic, Shopify’s revenues rocketed 96 per cent YoY to US$ 767.4 million in the third quarter ending 30 September 2020. Its gross profit jumped 87 per cent to US$ 405.1 million and its operating income climbed to US$ 50.6 million in Q3 2020.

© Kalkine Group Image

Now with the shopping arena covered, let’s check out a few other stocks to look forward to this holiday season.

Holiday Season Stocks

Canada’s top freight airline Cargojet In (TSX: CJT) recently said that it is expecting record volumes of goods for transportation during the holiday season between Black Friday and early January. Overall, Cargojet reported quite a boost in its business throughout the year due to the rise in deliveries across the world amid the pandemic.

Cargojet stocks too posted a boost of about 100 per cent year-to-date (YTD). While most of the aviation industry suffered, Cargojet scrips zoomed almost 51 per cent in the last six months. The shares are currently priced at C$ 207.

Cargojet posted total revenues of C$162.3 million in the third quarter of 2020, up from C$ 117.4 million in Q3 2019.

Pot stocks of Aphria Inc (TSX: APHA) have noted quite a recovery since their March lows. The cannabis stock zoomed nearly 59 per cent YTD and about 61 per cent in the last six months.

Currently priced at C$ 10.78, stocks of Aphria Inc soared about 82 per cent in November alone.

The pot company’s net cannabis revenue shot up by 103 per cent quarter-over-quarter in the first quarter of fiscal 2021.

Ending on a note of cybersecurity, let’s talk about BlackBerry (TSX: BB) stocks which are currently raging on the TSX with a 10-day average movement volume of 10.8 million.

Stocks of BlackBerry Inc are up about 31 per cent this year and nearly 41 per cent in the last six months. The scrips surged about 43 per cent in December alone.

BlackBerry shares are currently priced at C$ 10.91.

BlackBerry Inc’s revenues surged from US$ 244 million in Q2 FY20 to US$ 259 million in Q2 FY21 ending 31 August 2020.

So, there is it!

A rack full of stocks to watch out for ahead of the holiday season. Keep these in mind and have a happy holiday.

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