I’m sure most of you out there are familiar with the concept of a Secret Santa. For those of you who aren’t, you are randomly assigned a person to give a gift, while someone else—unknown to you—buys you a gift of a similar value.
But what about a stock market Secret Santa?
Let’s pretend that instead of buying your friends or officemates a cheap gift from Bed Bath and Beyond or a gift card to Chipotle—or whatever-- you have to buy them a share of stock instead.
But because this is an office thing, there is a relatively low price ceiling of $30. So in other words, you can’t just get them a share of (AAPL - Analyst Report) or (IBM - Analyst Report), you have to pick a company with a much lower share price.
So in this stock version which company would you give out as a gift this year?
This was harder than I initially thought it was going to be, largely due to the $30 price, but I think I would go with Archer Daniels Midland (ADM - Analyst Report). While it isn’t the ‘sexiest’ company out there, it fits within the price target, has a low forward PE below 12, and a great dividend yield.
Best of all it is currently in a top ranked industry—14th of 265 at time of writing—while the stock itself has a Zacks Rank of 2 or ‘Buy’.
If that is too weird for you, then maybe Brunswick Corp (BC - Snapshot Report) instead. The company is just under $30/share and currently has a Zacks Rank of 1 or ‘Strong Buy’. Plus, the company’s focus on boats, bowling and billiards might make it a better ‘gift’ than the boring ADM.
But what about you? What do you think would make a great stock gift this Holiday season?
Let us know what you think in the comments below, and Merry Christmas and Happy Holidays from all of us here at Zacks!