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A Sumptuous Spread of ETFs & Stocks for Thanksgiving
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The time has arrived to thankall good things in life. Like every year, most Americans warm up for their celebratory meals and vacations with family and friends on the fourth Thursday of November. Thanksgiving also marks the start of the one month-long holiday season.
This year too, savings on gas stations, an improving job market and still-contained inflation should lay a grand spread on the Thanksgiving table.
How Pricey Will Thanksgiving Meal be This Year?
The average cost of this year’s Thanksgiving feast for 10 is $49.12, down 75 cents from last year’s average of $49.87, according to the American Farm Bureau Federation. The cost is the cheapest in five years. Even the main item of the event, the turkey, is coming at 2 cents less per pound. So, one can expect copious consumption of Turkey this year.
However, the U.S. Department of Labor’s Consumer Price Index for food-at-home indicates a 0.5% rise in costs compared with the Farm Bureau’s 1.5% decline. As per an article published on usatoday.com, “the discrepancy is likely a result of the Farm Bureau’s emphasis on a select group of holiday fare.”
Forget dine-at-home, dining outside should also be in the cards. Restaurants like Denny’s (DENN - Free Report) , Bob Evans , Cracker Barrel (CBRL - Free Report) , DineEquity (DIN - Free Report) , Maggiano's Little Italy of Brinker International Restaurants (EAT - Free Report) , Rudy Tuesday and Ruth's Hospitality Group, Inc. will be open on Turkey Day. Several of these restaurants offer fat deals on this occasion.
Apart from restaurants, stores like Walmart (WMT - Free Report) and Target (TGT - Free Report) will likely see increased footfall thanks to deals and offerings.
How About Thanking Travel & Hotel Demand?
According to travel service provider AAA, thanksgiving holiday travel is expected to hit levels not seen in 12 years. Auto travel is expected to increase 3.2% from last year while air travel will likely jump 5%. The auto club projects that about 89% will take long car trips while almost 8% will take to the skies (read: Will Airline ETF Crash on Subdued Q3 or Take Off on Value?).
The average price of hotels rated by AAA as three-diamond jumped 14% a night, as indicated by auto club. However, the average rate for two-diamond hotels declined 5% to $117.
All in all, food and beverage as well as travel-related companies are eyeing huge profits this Thanksgiving, some sales and some realization driven. This is a key business-boosting occasion for these stocks and the related ETFs. Let’s take a look at the stocks and ETFs that investors can stuff in their portfolio for some gains this Thanksgiving.
This product offers exposure to stocks that are engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. PBJ charges 59 bps in fees.
The company operates as a franchisee of McDonald's with its operations distributed in Brazil, North Latin America division, South Latin America and the Caribbean division. It has a Zacks Rank #2 (Buy) and a VGM (Value, Growth, Momentum) Score of A.
This fund gives investors exposure to the overall performance of the global agribusiness industry. The United States makes up over half of the basket. MOO charges 56 bps in fees.
Cosan Limited
This ethanol and sugar company has a Zacks Rank #2 and a VGM Score of A.
The fund is designed to track the performance of the largest and most-liquid companies engaged in manufacturing of automobiles. It charges 70 bps in fees (read: October Retail Sales Steady: 4 ETF & Stock Picks).
This Zacks Rank #2 provider of consumer leads and associated marketing services,primarily to automotive dealers and manufacturers, has a Zacks Rank #2 and a VGM Score of A.
As per an article published on Reuters, “the busiest Thanksgiving travel period in more than a decade” could benefit airlines stocks and this ETF. It charges 60 bps in fees (read: 7 ETF Picks for November).
This Zacks Rank #2 company is a provider of services, protection plans, products and resources for recreational vehicle enthusiasts. The stock has a VGM Score of A.
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A Sumptuous Spread of ETFs & Stocks for Thanksgiving
The time has arrived to thankall good things in life. Like every year, most Americans warm up for their celebratory meals and vacations with family and friends on the fourth Thursday of November. Thanksgiving also marks the start of the one month-long holiday season.
This year too, savings on gas stations, an improving job market and still-contained inflation should lay a grand spread on the Thanksgiving table.
How Pricey Will Thanksgiving Meal be This Year?
The average cost of this year’s Thanksgiving feast for 10 is $49.12, down 75 cents from last year’s average of $49.87, according to the American Farm Bureau Federation. The cost is the cheapest in five years. Even the main item of the event, the turkey, is coming at 2 cents less per pound. So, one can expect copious consumption of Turkey this year.
However, the U.S. Department of Labor’s Consumer Price Index for food-at-home indicates a 0.5% rise in costs compared with the Farm Bureau’s 1.5% decline. As per an article published on usatoday.com, “the discrepancy is likely a result of the Farm Bureau’s emphasis on a select group of holiday fare.”
Forget dine-at-home, dining outside should also be in the cards. Restaurants like Denny’s (DENN - Free Report) , Bob Evans , Cracker Barrel (CBRL - Free Report) , DineEquity (DIN - Free Report) , Maggiano's Little Italy of Brinker International Restaurants (EAT - Free Report) , Rudy Tuesday and Ruth's Hospitality Group, Inc. will be open on Turkey Day. Several of these restaurants offer fat deals on this occasion.
Apart from restaurants, stores like Walmart (WMT - Free Report) and Target (TGT - Free Report) will likely see increased footfall thanks to deals and offerings.
How About Thanking Travel & Hotel Demand?
According to travel service provider AAA, thanksgiving holiday travel is expected to hit levels not seen in 12 years. Auto travel is expected to increase 3.2% from last year while air travel will likely jump 5%. The auto club projects that about 89% will take long car trips while almost 8% will take to the skies (read: Will Airline ETF Crash on Subdued Q3 or Take Off on Value?).
The average price of hotels rated by AAA as three-diamond jumped 14% a night, as indicated by auto club. However, the average rate for two-diamond hotels declined 5% to $117.
All in all, food and beverage as well as travel-related companies are eyeing huge profits this Thanksgiving, some sales and some realization driven. This is a key business-boosting occasion for these stocks and the related ETFs. Let’s take a look at the stocks and ETFs that investors can stuff in their portfolio for some gains this Thanksgiving.
ETF & Stock Picks
F&B
PowerShares Dynamic Food & Beverage Portfolio PBJ
This product offers exposure to stocks that are engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. PBJ charges 59 bps in fees.
Arcos Dorados Holdings Inc. ARCO
The company operates as a franchisee of McDonald's with its operations distributed in Brazil, North Latin America division, South Latin America and the Caribbean division. It has a Zacks Rank #2 (Buy) and a VGM (Value, Growth, Momentum) Score of A.
Agri-Business
VanEck Vectors Agribusiness ETF MOO
This fund gives investors exposure to the overall performance of the global agribusiness industry. The United States makes up over half of the basket. MOO charges 56 bps in fees.
Cosan Limited
This ethanol and sugar company has a Zacks Rank #2 and a VGM Score of A.
Auto
First Trust NASDAQ Global Auto Index Fund CARZ
The fund is designed to track the performance of the largest and most-liquid companies engaged in manufacturing of automobiles. It charges 70 bps in fees (read: October Retail Sales Steady: 4 ETF & Stock Picks).
AutoWeb Inc. AUTO
This Zacks Rank #2 provider of consumer leads and associated marketing services,primarily to automotive dealers and manufacturers, has a Zacks Rank #2 and a VGM Score of A.
Airlines
U.S. Global Jets ETFJETS
As per an article published on Reuters, “the busiest Thanksgiving travel period in more than a decade” could benefit airlines stocks and this ETF. It charges 60 bps in fees (read: 7 ETF Picks for November).
American Airlines Group Inc. (AAL - Free Report)
This Zacks Rank #3 (Hold) airlines company has a VGM Score of C, at the time of writing.
Leisure
PowerShares Dynamic Leisure and Entertainment Portfolio PEJ
The underlying index of the fund comprises stocks of U.S. leisure and entertainment companies. It charges 61 bps in fees.
Camping World Holdings Inc. (CWH - Free Report)
This Zacks Rank #2 company is a provider of services, protection plans, products and resources for recreational vehicle enthusiasts. The stock has a VGM Score of A.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>