3 Retailers That Could Offer Big Gains From the Holiday Shopping Rush
Christmas is just days away, and apparently, alot of people still have a good deal of shopping to do over the next fortnight.
According to a Consumer Reports holiday poll, conducted with three weeks left before Christmas, 36% of gift givers -- approximately 66 million Americans -- still hadn't even begun their holiday shopping. The survey also revealed that most people had more than half of their shopping left to do.
This survey certainly suggests that there's going to be a mad rush of holiday shoppers between now and Dec. 25. Moreover, the probable big buying still to come is on top of very strongBlack Friday and Cyber Monday sales.
So, what does thismean for the hot holiday retailers this year? You guessed it -- big revenue, big profits, and a potential bounce in theshares that traders can exploit for big gains.
Here are three of my favorites:
Abercrombie & Fitch
One of the hottest retailers this season is Abercrombie & Fitch. The often controversial teen-oriented retailer has been on a wild ride this year, with the shares plunging throughout the summer on weak sales and a weaker full-year outlook.
Then, in November, the company surprisedWall Street with a huge revenue and earningsbeat due to strong sales and improved gross margins. The stock surged on the news, but I don't think the run is over yet, especially considering the store has been a hot trend for holiday shoppers this year -- shoppers that still have a lot ofmoney to spend.
Action to Take --> Buy ANF at themarket price . Set stop-loss at $43.20. Set initialprice target at $54 for a potential 15% gain in two months.
Limited Brands
Perhaps best known for its Victoria Secret intimate apparel stores, this women's specialty retailer continues to see strong sales, not only at Victoria's Secret, but also in its personal care products via the Bath & Body Works brands. The company's strong fiscal position recently allowed it to declare aspecial dividend to shareholders in early December, in front of the likelihood of higherdividend taxes next year.
One aspect of the company that I thinkwill help drive its stock price higher is that Limited Brands has embarked on plans to expand their international footprint, and to make its brands household names around the world. The company already announced that it was going to expand into growth areas such asemerging markets , including the cash-rich Middle East nation of Kuwait.
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Christmas is just days away, and apparently, alot of people still have a good deal of shopping to do over the next fortnight.
According to a Consumer Reports holiday poll, conducted with three weeks left before Christmas, 36% of gift givers -- approximately 66 million Americans -- still hadn't even begun their holiday shopping. The survey also revealed that most people had more than half of their shopping left to do.
This survey certainly suggests that there's going to be a mad rush of holiday shoppers between now and Dec. 25. Moreover, the probable big buying still to come is on top of very strongBlack Friday and Cyber Monday sales.
So, what does thismean for the hot holiday retailers this year? You guessed it -- big revenue, big profits, and a potential bounce in theshares that traders can exploit for big gains.
Here are three of my favorites:
Abercrombie & Fitch
One of the hottest retailers this season is Abercrombie & Fitch. The often controversial teen-oriented retailer has been on a wild ride this year, with the shares plunging throughout the summer on weak sales and a weaker full-year outlook.
Then, in November, the company surprisedWall Street with a huge revenue and earningsbeat due to strong sales and improved gross margins. The stock surged on the news, but I don't think the run is over yet, especially considering the store has been a hot trend for holiday shoppers this year -- shoppers that still have a lot ofmoney to spend.
Action to Take --> Buy ANF at themarket price . Set stop-loss at $43.20. Set initialprice target at $54 for a potential 15% gain in two months.
Limited Brands
Perhaps best known for its Victoria Secret intimate apparel stores, this women's specialty retailer continues to see strong sales, not only at Victoria's Secret, but also in its personal care products via the Bath & Body Works brands. The company's strong fiscal position recently allowed it to declare aspecial dividend to shareholders in early December, in front of the likelihood of higherdividend taxes next year.
One aspect of the company that I thinkwill help drive its stock price higher is that Limited Brands has embarked on plans to expand their international footprint, and to make its brands household names around the world. The company already announced that it was going to expand into growth areas such asemerging markets , including the cash-rich Middle East nation of Kuwait.
Read Full Article>>>