Submerged in the daily grind, we often tend to lose sight of future happiness. The picture is the same in the stock market, where the “China story,” with a spillover effect on the U.S. economy, and the Fed’s pending decision over the rate hike have snowballed into a common issue.
Can anyone think of something better or brighter? It’s only a little more than a month left for the holiday season to kick off; can’t we for a change look at the brighter side of life?
Don’t let your blood pressure mimic stock market volatility. Instead, think beyond the current market issues, and lift your mood for the upcoming holiday season.
U.S. Economy: Star of the West
The U.S. economy isn’t in such a bad shape really. A gradual recovery in the housing market and manufacturing sector, along with an improving labor market and lower gasoline prices, are favoring the economy and playing key roles in raising buyers’ confidence. We expect this positive sentiment to propel consumer spending. With the ability and willingness to spend more, retailers could hear their cash registers jingle.
Data compiled by eMarketer suggests a 5.7% jump in holiday sales (November and December) to $885.7 billion against 3.2% growth projected earlier. Retail E-commerce holiday season sales are anticipated to increase 13.9%, and would represent approximately 9% of total sales this season (or $79.4 billion), up from 8.3% last year.
Retailers will be on their toes to make the most of the holiday season, flooding the markets with offers and promotions. They will sweep buyers off their feet with early-hour store openings, huge discounts, promotional strategies, and free shipping on online purchases. Since the season accounts for a sizeable chunk of yearly revenues and profits, retailers will grab every opportunity to drive footfall.
If retailers leave no stone unturned to make the most of the season, why can’t we investors do the same? Can’t we bunch up some favorable stocks for the season and make our own holiday hamper?
Holiday Stocks
We have identified stocks based on the Zacks’ Profitable Mix formula of a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy) + positive Zacks Earnings ESP that may fetch you solid returns as the season unfolds.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%. A favorable Zacks Rank indicates positive estimate revisions by analysts who are optimistic on the future performance of companies. Moreover, Earnings ESP is our proprietary methodology for identifying stocks that have the best chance of surprising with their next earnings announcement.