Thanksgiving Day: Top stocks to watch as holiday sales kickstarts

Highlights

  • The National Retail Federation expects the total sales during the US holiday season to grow between 8.5% and 10.5% YoY.

  • Target will no longer open its stores on Thanksgiving Day.

  • Home Depot, Inc. (NYSE: HD) announced a quarterly dividend of US$1.65 per share.

The previous record shows consumer spending and sales surge during the Thanksgiving week and the subsequent period leading up to the new year. This year, though, the retailers had to prepare for the big sales season way in advance due to the supply chain woes. Typically, retail, food, and travel sectors see robust sales during the Thanksgiving week.

Here we explore the top five stocks that may stand to gain the most during the holiday season.

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Walmart Inc. (NYSE: WMT)


Walmart is a retail company based in Bentonville, Arkansas, and operates scores of grocery and discount departmental stores.

The shares of the company traded at US$146.00 at 10:35 am ET on November 24, up 0.13% from their closing price of November 23. Its stock value decreased by 0.49% YTD. 

The firm has a market cap of US$407.98 billion, a P/E ratio of 51.16, and a forward P/E one year of 22.78. Its EPS is US$2.86. 

The 52-week highest and lowest stock prices were US$153.66 and US$126.28, respectively. Its trading volume was 9,972,448 on November 23.

The company's total revenue increased by 4.3% YoY to US$140.52 billion in Q3, FY22. Its consolidated net income came in at US$3.13 billion, or US$1.11 per diluted share, compared to US$5.20 billion, or US$1.80 per share in Q3, FY21.

On a GAAP basis, the company expects its EPS to be about US$5.00 in the fiscal year 2022. It also expects its adjusted EPS to be around US$6.40, up from its earlier forecast of US$6.20 to US$6.35 per share.

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Thanksgiving stocks: WMT, TGT, HD, BBWI, BKNG

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Target Corporation (NYSE: TGT)


Target Corporation is one of the leading retail firms in the US that offers groceries, essentials, apparel, and other consumer products. It is based in Minneapolis, Minnesota.

The stock of the company was priced at US$248.32 at 10:41 am ET on November 24, down by 0.35% from its previous closing price. The TGT stock rose 40.28% YTD.

The market cap of the company is US$119.10 billion, the P/E ratio is 18.22, and the forward P/E one year is 18.95. Its EPS is US$13.59. 

The stock saw the highest price of US$268.98 and the lowest price of US$166.82 in the last 52 weeks. Its share volume on November 23 was 4,055,037. Meanwhile, Target said it will not open its stores on Thanksgiving Day, the unofficial start of the holiday season.

The company's total revenue surged 13.3% YoY to US$25.65 billion in Q3, FY21. Its net earnings came in at US$1.48 billion, or US$3.04 per diluted share, as compared to US$1.01 billion, or US$2.01 per diluted share in the same quarter of the previous year.

The firm expects its full fiscal 2021 operating income margin rate to be 8% or higher.

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Home Depot, Inc. (NYSE: HD)

Home Depot is a home improvement company that provides tools, construction products, and other related services for consumers. It is based in Atlanta, Georgia.

The shares of the company traded at US$408.32 at 10:43 am ET on November 24, down by 0.01% from their closing price of November 23. Its stock value increased by 54.73% YTD. It has a market cap of US$431.14 billion, a P/E ratio of 27.31, and a forward P/E one year of 26.48. Its EPS is US$14.96. 

The 52-week highest and lowest stock prices were US$416.56 and US$246.59, respectively. Its trading volume was 3,557,468 on November 23.

The company reported sales of US$36.8 billion, up 9.8% YoY in Q3, FY21. It reported net earnings of US$4.1 billion, or US$3.92 per diluted share, compared to US$3.4 billion, or US$3.18 per diluted share in the year-ago quarter.

Meanwhile, on November 18, the firm announced that its board of directors declared a Q3 cash dividend of US$1.65 per share, payable on December 16, 2021.

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Bath & Body Works Inc. (NYSE: BBWI)


Bath & Body Works is a Columbus, Ohio-based specialty retailer that offers a range of products like body care, home fragrances, soaps, etc. for consumers.

The stock of the company was priced at US$74.55 at 10:46 am ET on November 24, down by 1.30% from its previous closing price. The BBWI stock jumped around 136.33% YTD.

The market cap of the company is US$19.65 billion, the P/E ratio is 13.11, and the forward P/E one year is 16.78. Its EPS is US$5.67. The stock saw the highest price of US$82.00 and the lowest price of US$36.09 in the last 52 weeks. Its share volume on November 23 was 3,308,057.

The firm's net sales came in at US$1.68 billion in Q3, FY21, compared to US$1.70 in the year-ago quarter. It reported a net income of US$87.80 million, or US$0.66 per diluted share, against an income of US$330.58 million, or US$0.69 per diluted share in Q3, FY20.

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Stocks to explore that may benefit from the holiday season

Source: Pixabay

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Booking Holdings Inc. (NASDAQ: BKNG)

Booking Holdings is a travel technology company based in Norwalk, Connecticut. It provides online reservations and other related services for traveling and restaurants.

The shares of the company traded at US$2329.68 at 10:48 am ET on November 24, down by 0.49% from their closing price of November 23. Its stock value soared 8.18% YTD.

The firm has a market cap of US$96.33 billion, a P/E ratio of 256.11, and a forward P/E one year of 53.74. Its EPS is US$9.16. 

The 52-week highest and lowest stock prices were US$2,687.29 and US$1,860.73, respectively. Its trading volume was 256,565 on November 23.

The company's total revenue was US$4.67 billion in Q3, FY21, compared to US$2.64 billion in the third quarter of the previous year. Its net income came in at US$769 million, versus income of US$801 million in the comparable quarter of the prior year.

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Bottomline


The National Retail Federation estimated that the total sales during the US Holiday season are expected to grow between 8.5% and 10.5% YoY, with estimated total spending of about US$850 billion in the last two months of the year. In addition, various industry surveys showed that over 100 million Americans might travel this year around Thanksgiving.

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