As the holiday shopping season kicks off with Black Friday, some retail stocks are poised to benefit more than others, driven by anticipated strong consumer spending. According to Goldman Sachs, there’s an optimistic outlook for holiday shopping, with nearly 60% of consumers indicating they plan to maintain or increase their spending compared to last year. Notably, lower-income households are expected to boost their expenditure.
Citigroup’s analyst Paul Lejuez has also noted positive consumer spending trends as the season begins. Against this backdrop, CNBC Pro identified certain retail stocks that have consistently performed well in December historically, focusing on members of the SPDR S&P Retail ETF (XRT).
One standout is Bath & Body Works, whose shares have seen consistent December gains of over 8% in the past three years, despite lagging the S&P 500 overall. The Columbus, Ohio-based retailer has raised its full-year profit forecast, buoyed by strong holiday shopping trends, even as it reports a smaller-than-expected decline in annual sales.
Clothing retailer Abercrombie & Fitch also shows promise, with shares surging more than 64% in 2024. Historically, its stock has averaged nearly 3% gains each December over the past three and five years. The company recently surpassed quarterly earnings expectations and raised its sales guidance, highlighting robust holiday spending patterns.
Other notable mentions include Macy’s, which has delayed its earnings report, and Groupon, as retailers prepare for potential December gains amidst a bullish holiday market outlook.
Original Story https://www.cnbc.com/2024/11/26/black-friday-trades-these-retailers-could-gain-during-holiday-season.html
Category :
Tags:
