US Shoppers Plan To Spend $2,100 This Holiday Season, 7% Higher Than 2023: When Should Traders Start Buying Retail Stocks?
Portfolio Pulse from Piero Cingari
US consumers plan to spend $2,100 on holiday shopping in 2024, a 7% increase from 2023. Despite this, retail stocks historically underperform during the holiday season, with better gains seen in early months of the following year. The SPDR S&P Retail ETF (XRT) and companies like Amazon (AMZN), Walmart (WMT), Target (TGT), and Best Buy (BBY) are affected by this trend.
October 24, 2024 | 8:34 pm
News sentiment analysis
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NEGATIVE IMPACT
Amazon (AMZN) may see increased online sales during the holiday season, but its stock is likely to underperform during this period, with better gains expected early next year.
While Amazon is likely to benefit from increased online shopping, historical trends suggest that its stock may underperform during the holiday season, with better performance expected in early months of the following year.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Best Buy (BBY) may see increased sales during the holiday season, but its stock is likely to underperform, with better gains expected early next year.
Best Buy is expected to benefit from increased consumer spending, but historical trends suggest its stock may underperform during the holiday season, with better performance expected in early months of the following year.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Target (TGT) may see increased sales during the holiday season, but its stock is likely to underperform, with better gains expected early next year.
Target is expected to benefit from increased consumer spending, but historical trends suggest its stock may underperform during the holiday season, with better performance expected in early months of the following year.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Walmart (WMT) is expected to benefit from increased consumer spending, but its stock may underperform during the holiday season, with better gains expected early next year.
Despite increased consumer spending, Walmart's stock may underperform during the holiday season, as historical data suggests better performance in the early months of the following year.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
The SPDR S&P Retail ETF (XRT) is expected to underperform during the holiday season despite increased consumer spending, with historical data showing better performance in early months of the following year.
Despite a 7% increase in holiday spending, historical data shows that retail stocks, including XRT, tend to underperform during the holiday season. The ETF typically sees better performance in the first few months of the following year.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90