- According to the National Retail Federation (NRF), the US holiday sales are likely to grow by around 8.5% to 10.5% YoY this year.
- Consumer spending could reach US$850 billion in the closing month of the year, as per NRF.
- Retail, food, and travel stocks are likely to gain traction during this time.
The Thanksgiving week typically sees increased consumer spending as retailers offer special deals and discounts to attract more customers to their stores. In addition, the period leading up to Thanksgiving Day on Nov 26 and the high-value sales days after Thanksgiving like the Black Friday and Cyber Monday sales are a delight for both retailers and consumers.
It is typically the best period for the retail, food, and travel companies to ramp up their sales. According to National Retail Federation (NRF), this year’s US holiday sales are likely to grow by around 8.5% to 10.5% YoY. Although October retail sales grew by a modest 1.7% MoM, the retailers are hopeful to cover the sales gaps during the upcoming festivities.
Top food and beverages stocks to explore in Thanksgiving week
As records show, the market sees increased sales during the Thanksgiving holiday week. The spending could reach US$850 billion in the closing month of the year, as per NRF.
Here, we explore five top food and beverage stocks for thanksgiving week.
Keurig Dr Pepper Inc. (NASDAQ: KDP)
Market Capitalization – US$50.6 billion
52 weeks price range - US$37.11 to US$29.52
The Birlington, Massachusetts-based company provides non-alcoholic beverages, including 7UP, Schweppes, and Mott's, among others.
For the first nine months of 2021, the company earned revenue of US$9.29 billion, up from the previous year’s comparable nine months revenue of US$8.50 billion.
The net income also increased to US$1.3 billion for the nine months compared to US$0.897 billion in the first nine months of 2020.
The beverage company has a P/E ratio of 29.51 and a forward P/E for one year of 21.98. Its dividend yield is 2.13%, and its annualized dividend is US$0.75%.
The stock closed at US$35.16 on November 19, 2021.
Monster Beverage Corporation (NASDAQ: MNST)
Market Capitalization – US$47.7 billion
52 weeks price range – US$99.89 to US$82.96
The Corona, California-based Monster Beverage is an energy drink provider. It develops, sells, and distributes energy beverages and concentrates. Its portfolio includes Muscle Monster, Punch Monster, Relentless, Ultra Energy, Espresso Monster, Power Play, Juice Monster, etc.
For the nine months ended September 30, 2021, its sales were US$4.1 billion compared to US$3.4 billion for the same period a year ago. The company booked a net income of US$1.06 billion against US$0.937 billion in the previous year’s corresponding nine-month period.
Its P/E ratio is 31.65, and the forward P/E for one year is 34.88. The stock closed at US$89.30 on November 19, 2021.
Molson Coors Beverage (NYSE: TAP)
Market Capitalization – US$10.2 billion
52 weeks price range – US$61.48 to US$42.46
The Golden, Colorado-based TAP is one of the largest beer producers globally. Its portfolio includes company-owned brands like Coors, Miller, Blue Moon, Staropramen, and Vizzy, and partner brands include Canada’s Topo Chico and Corona in Europe.
In the nine months ended September 30, 2021, the company’s consolidated net sales were US$7,660.5 million. The consolidated income before tax was US$1,129.5 million compared to US$693.4 million in the same period of the previous year.
The company has a forward P/E one year of 10.90, a dividend yield of 2.96%, and an annualized dividend of US$1.36. The stock closed at US$89.30 on November 19, 2021.
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Celsius Holdings, Inc. (NASDAQ: CELH)
Market Capitalization – US$5.5 billion
52 weeks price range - US$110.22 to US$30.11
The Boca Raton, Florida-based beverage company develops, markets, sells, and distributes calorie-burning beverages. Its drink flavors include wild berry, orange, lemon iced tea, and the non-carbonated drinks include Raspberry Acai and Peach Mango Green Tea.
Its revenue and net income for the nine months ended September 30, 2021, were US$210 million and US$7.29 million, respectively, compared to revenue and net income of US$95 million and US$6.86 million, respectively, in the corresponding period of the previous year.
The CELH stock has a P/E ratio of 667.73 and a forward P/E one year of 520.29. Its stock closed at US$72.84 on November 19, 2021.
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The Simply Good Foods Company (NASDAQ: SMPL)
Market Capitalization – US$3.76 billion
52 weeks price range – US$41.35 to US$21.21
The Denver, Colorado-based SMPL provides shakes, nutritional bars, chips, cookies, and frozen pizza. Its brands are Atkins and Quest.
For the fiscal year ended August 28, 2021, the company posted net sales of US$1 billion compared to US$0.816 billion in FY 2020. The adjusted EBITDA was US$207 million for FY 2021 compared to US$153.9 million in FY 2020.
The SMPL has a P/E ratio of 58.6 and a forward P/E one year of 27.09. The company stock closed at US$39.01 on November 19, 2021.
Retailers generally see strong sales in the Thanksgiving week. The retail and other consumer stocks get an opportunity to beef up sales and close the year on a positive note.
For instance, besides Thanksgiving Day, activities like Black Friday and Cyber Monday on close heels witness a huge sales extravaganza to the delight of both consumers and retailers. These are some of the high-value sales days that the retailers plan for months in advance.