Trick-or-Treating: Here’re five Halloween stocks to explore

Highlights

• Mondelez International, Inc’s (NASDAQ:MDLZ) revenue rose 12% YoY in Q2, FY21.
  
  
• Gap, Inc’s (NYSE:GPS) net sales surged 29% YoY in Q2, FY21.
  
  
• The Hershey Company’s (NYSE:HSY) net sales grew over 6% YoY in Q3, FY21.

Retail stocks have been catching investors’ attention ahead of Halloween on October 31. People had begun shopping for the festival weeks early to avoid a last-minute shopping rush.

For retailers, the period leading up to Halloween is a time of sales, from chocolates, candies, gift items to jewelry and special attire. Halloween brings fun and joy, especially for children, as people celebrate in honor of the deceased.

However, this year, many retailers have struggled to restock their inventories as the supply chain has been severely disrupted.

Here we explore five stocks that gaining investors’ attention.

Also Read: Are these 7 digital payment stocks primed for online shopping boom?

Mondelez International, Inc. (NASDAQ:MDLZ)

Mondelez is a food and snack company based in Chicago, Illinois. It manufactures snacks and beverages for consumers.

The shares of the company traded at US$60.92 at 10:51 am ET on October 29, down 0.05% from their previous closing price. The stock rose 5.23% YTD. It has a market cap of US$85.07 billion, a P/E ratio of 20.15, and a forward P/E one year of 21.02. Its EPS is US$3.02.

The 52-week highest and lowest stock prices were US$65.60 and US$52.51, respectively. Its trading volume was 5,106,170 on October 28.

The firm will release its third-quarter financial results on November 2.

In the second quarter of fiscal 2021, its revenue surged 12% YoY to US$6.64 billion, while its net income was US$1.07 billion, compared to US$545 million a year ago.

Also Read: Amazon.com, Inc.’s (AMZN) net income falls, sales jump 15% in Q3

Also Read: Yum! (YUM) beats profit estimates, Hershey (HSY) raises guidance

Gap, Inc. (NYSE:GPS)

The Gap is a clothing retail company based in San Francisco, California. It sells clothes, accessories, and personal care products under various brands.

The stock was priced at US$22.635 at 11:07 am ET on October 29, down 1.42% from its previous closing price. The GPS stock rose 19.46% YTD.

The market cap is US$8.50 billion, the P/E ratio is 11.54, and the forward P/E one year is 10.44. Its EPS is US$1.96. The stock saw the highest price of US$37.63 and the lowest price of US$19.10 in the last 52 weeks. Its share volume on October 28 was 9,115,617.

The company's net sales were up 29% YoY to US$4.21 billion in Q2, FY21, the highest second-quarter sales in over a decade. Its net income came in at US$258 million, against a loss of US$62 million in Q2, FY20.

Also Read: Caterpillar (CAT), Illinois (ITW) report solid revenue growth in Q3

Target Corporation (NYSE:TGT)

Target Corporation is a Minneapolis, Minnesota-based retail company. It sells groceries, dairy and frozen items, and other food products through its stores and other channels.

The shares of the company traded at US$259.36 at 11:15 am ET on October 29, up 0.44% from their closing price of October 28. Its stock value surged 45.37% YTD.

The firm has a market cap of US$126.37 billion, a P/E ratio of 20.62, and a forward P/E one year of 19.96. Its EPS is US$12.56. The 52-week highest and lowest stock prices were US$267.06 and US$150.80, respectively. Its trading volume was 1,735,194 on October 28.

The company's total revenue increased by 9.5% YoY to US$25.16 billion in Q2, FY21. Its net earnings were US$1.81 billion, up 7.4%, from US$1.69 billion in Q2, FY20.

Also Read: Linde (LIN) lifts guidance, Comcast (CMCSA) beats profit expectations

Macy's Inc (NYSE:M)

Macy's is a departmental store chain company based in New York. It sells a range of products like apparel, accessories, personal care, home furnishing, etc.

The stock was priced at US$26.25 at 11:20 am ET on October 29, down 0.15% from its previous closing price. Macy's stock jumped 134.31% YTD.

The market cap of the company is US$8.14 billion, the P/E ratio is 16.33, and the forward P/E one year is 7.01. Its EPS is US$1.61. The stock saw the highest price of US$28.41 and the lowest price of US$6.01 in the last 52 weeks. Its share volume on October 28 was 8,381,998.

The company will report its third-quarter earnings results on November 18, before the opening bell.

Macy's net sales were US$5.64 billion in Q2, FY21, compared to US$3.55 billion in the prior year's same quarter. Its net income was US$345 million, against a loss of US$431 million in Q2, FY20.

Also Read: Northrop (NOC) ekes out US$1.1 bn profit but misses revenue estimates

Source: Pixabay

Also Read: Merck (MRK), Sanofi (SNY) raise profit guidance after solid Q3 results

The Hershey Company (NYSE:HSY)

The Hershey Company is a chocolate and cocoa company that manufactures baked products like cookies, cakes, and other confectionery items. It is based in Derry Township, Pennsylvania.

The shares of the company traded at US$176.21 at 11:25 am ET on October 29, down by 1.78% from their closing price of October 28. Its stock value grew by 18.89% YTD.

The firm has a market cap of US$36.98 billion, a P/E ratio of 26.09, and a forward P/E one year of 25.87. Its EPS is US$6.88. The 52-week highest and lowest stock prices were US$182.71 and US$135.83, respectively. Its trading volume was 1,900,914 on October 28.

The firm's net sales rose 6.3% YoY to US$2.35 billion in Q3, FY21. Its attributable net income came in at US$444.92 million, compared to US$447.25 million in the year-ago quarter.

Also Read: Mastercard (MA) revenue jumps 30%, STMicro (STM) profits nearly double

Bottomline

Despite supply issues, retailers had 25% more seasonal items in the stores than the previous year. Chocolate and candy sales surged more than 45% and 55%, respectively, compared to the same period in 2019, industry data showed. Analysts also expect significant retail sales growth during the holiday season leading up to the new year. However, investors should exercise due diligence before investing in stocks.