Is it the right time to buy Christmas stocks?

4 min read | November 19, 2021 07:49 AM GMT | By Rishika Raina

Highlights

  • Labour shortages, transport delays, and material shortages have been causing supply chain disruptions in the UK ahead of Christmas.
  • Retail firms are trying to make their products reach the supermarket shelves this winter.
  • Christmas shopping may be slightly preponed to November as consumers would ideally prefer to buy their desired gifts and other household stuff beforehand.

The UK has lately been facing supply chain disruptions due to labour shortages, transport delays, and material shortages across the globe. All these factors combined together have led to a sharp increase in consumer demand which has in turn created gaps on supermarket shelves.

The manufacturing sector of the UK has been suffering amid the rising inflationary pressure and soaring gas prices, while the consumers are also suffering with costs being passed on to them. Various businesses have been facing supply chain issues ahead of Christmas, however, they are still trying to make their products reach the supermarket shelves this winter.

As consumers are already well aware about the supply chain issues, the Christmas shopping may be slightly preponed to November as the consumers would ideally shop for gifts and other household stuff beforehand to avoid facing shortage or unavailability later.

Purchasing stocks before holidays is a strategy followed by both short term as well as long term investors. The selling pressure generally increases ahead of Christmas, driving the stock prices to fall, which provides the investors with a good opportunity to buy stocks at lower prices and sell them later when the prices revive.

  Purchasing stocks before holidays is a strategy followed by both short term as well as long-term investors.

Source: Copyright © 2021 Kalkine Media

RELATED READ: M&S (MKS), Next (NXT) & WH Smith (SMWH): 3 retail stocks to buy now

Let’s take a look at some of the UK retail stocks that investors can buy ahead of Christmas.

WH Smith Plc (LON: SMWH)

WH Smith plc is a UK-based retailer operating via two segments, which are Travel and High Street. The current market cap of the FTSE250-listed company stands at £2,029.09 million and the shares of the company have given a return of 8.24% to shareholders in the last one year. WH Smith plc’s shares were trading at GBX 1,543.00 at 8:03 AM on 18 November 2021 (GMT).

JD Sports Fashion PLC (LON: JD)

JD Sports Fashion PLC is a leading UK-based retail company that sells branded sportswear and fashionwear across the globe. The current market cap of the FTSE100-listed company stands at £11,930.77 million and it has given a return of 46.95% in the last one year. JD Sports Fashion PLC’s shares were trading at GBX 1,159.50 at 8:04 AM on 18 November 2021 (GMT).

Frasers Group PLC (LON: FRAS)

Frasers Group PLC is a UK-based retail and intellectual property group that mainly operates under the Sports Direct brand, both online and physical outlets. The current market cap of the FTSE250-listed company stands at £3,490.32 million and its shares have given a return of 46.36% in the last year. Frasers Group PLC’s shares were trading at GBX 698.00 at 8:05 AM on 18 November 2021 (GMT).

RELATED READ: Card Factory, ASOS & M&S: 3 retail stocks to buy before Xmas 2021

Dunelm Group plc (LON: DNLM)

Operating throughout the UK, Dunelm Group plc is into home furnishings retailer, manufacturing curtains, blinds, and accessories in its own factories. The current market cap of the FTSE250-listed company stands at £2,819.43 million and its shares returned 12.13% to the shareholders in the last one year. Dunelm Group plc’s shares were trading at GBX 1,380.00 at 8:06 AM on 18 November 2021 (GMT).

Card Factory PLC (LON: CARD)

Card Factory PLC is a retail company which is manufacturing greeting cards, party decorations, and gifts in the UK.  The current market cap of the company stands at £232.27 million, and it has given a return of 29.00% in the last one year. Card Factory PLC’s shares were trading at GBX 54.70 at 8:06 AM on 18 November 2021 (GMT).


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next