Black Friday is here and Americans are set to spend on the year’s busiest shopping day. We note that, from early 2000, both urban and suburban dwellers have started regarding this day as the beginning of their holiday shopping season.
Eye-popping Black Friday deals are an important component to the Christmas shopping bonanza. Retailers try to sweep buyers off their feet with price-matching policies, early-hour store openings, huge discounts, promotional strategies and free shipping on online purchases.
This year, Black Friday is expected to be huge, thanks to a rebounding economy, falling unemployment rate and improved consumer sentiment, which should push up sales. Besides improving macro factors, consumers are also benefiting from rising wages and cheaper fuel. With oil and natural gas prices subsiding, consumers are left with more disposable income.
Further, The Federal Reserve has hinted at a December rate hike in its most recent two-day FOMC meeting. The Fed stated that it will “assess progress toward its goals of maximum employment and 2% annual inflation” in determining whether to increase interest rates for the first time in almost a decade at its next meeting December 15–16. It cited that recent headwinds are fading with substantial positive developments seen in the global economy and financial markets lately.
In particular, the Chinese economy is showing signs of stabilization on the back of better-than-expected GDP growth data and another rate cut while Japanese and European central banks are taking additional stimulus measures to revive their economies.
European Central Bank (ECB) President Mario Draghi’s dovish comments on Oct 22 also had a positive impact on broader markets. He indicated that the central bank could expand its quantitative easing measures at its meeting late next week.
With the growing optimism in the economy, retailers, food and beverage companies are also pinning their hopes on this Black Friday for huge profits.
Let’s take a look at the stocks that investors can gobble up for some gains throughout the holiday season.
11 Key Picks
B&G Foods Inc. BGS
The company makes and markets packed and easy-to-store food and household products. Its product basket includes hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, Mexican-style sauces, pickles, peppers, salad dressings, dry soups, puffed corn and rice snacks and many more. The list clearly indicates why the stock should be a hit on Black Friday. B&G has a Zacks Rank #1 (Strong Buy).
Tyson Foods, Inc. TSN
Tyson Foods is the world's largest fully-integrated producer, processor and marketer of chicken and poultry-based food products. The demand for chicken is rising and so is the demand for this Zacks Rank #2 (Buy) stock.
Dean Foods Company DF
Dean Foods Company is the nation's leading processor and distributor of fresh milk and other dairy products, and a leader in the specialty foods industry. Its milk and milk-based beverages, ice cream, coffee creamers, cottage cheese, yogurt, dips, dressings will surely set the mood for the Friday festivities. Dean Foods has a Zacks Rank #1.
ConAgra Foods, Inc. CAG
ConAgra Foods, a Zacks Rank #2 company, operates as a packaged food company and offers a wide range of food products, including meals, sides, snacks, seasonings, and blends and flavors. This food company is a hot pick for Black Friday.
Dr. Pepper Snapple Group, Inc. DPS
Dr. Pepper Snapple is one of the largest beverage companies in the Americas. This would be a good pick for investors as the holiday season is best celebrated with beverages. The company carries a Zacks Rank #2.
Omega Protein Corp. OME
Investors can also pick Houston-based Omega Protein Corporation. This Zacks Rank #1 company is one of the nation's leading producers of edible fish oil, which is high in nutritionally desirable Omega-3 fatty acids and is used in a variety of food products.
Prime Water Corporation PRMW
Prime Water Corporation sports a Zacks Rank #1 and could be valuable addition to your portfolio this Black Friday. The company operates as a provider of three- and five-gallon purified bottled water and water dispensers sold through major retailers nationwide. The company's water bottles can be sanitized and reused, crushed and recycled.
Lancaster Colony Corp. LANC
Lancaster Colony manufactures and markets three families of products: Glassware and Candles, Specialty Foods, and Automotive. Consumer glassware includes a diverse line of decorative and ornamental products. The food products manufactured and sold include salad dressings and sauces; fruit glazes, veggie dips and fruit dips; and frozen unbaked pies. It also manufactures and sells a complete line of rubber, vinyl and carpeted car mats both in the aftermarket and to original equipment manufacturers. This Zacks Rank #1 stock is an attractive bet at this point.
Ingredion Inc. INGR
Ingredion Inc. is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. This Zacks Rank #2 stock should be in your portfolio owing to the growing demand for nutrition products.
Hormel Foods Corporation HRL
Hormel Foods is a multinational manufacturer and marketer of consumer-branded meat and food products, many of which are among the best known and trusted in the food industry. This meat company will be a good pick for Black Friday. The company holds a Zacks Rank #2.
Constellation Brands Inc. STZ
The company, along with its subsidiaries, brews and markets beer, wine, and spirits in North America, Mexico, New Zealand and Italy. As people indulge in drinking and merrymaking during the course of the long weekend, the company’s sales are expected to witness an upside. Constellation Brands has a Zacks Rank #2.
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