Even though the pandemic has made changes in lifestyle and preferences of people, Americans are geared up to splurge this holiday season. Decreasing unemployment, hopes of fresh fiscal stimulus and scope of an effective coronavirus vaccine are likely to boost spending this holiday season. Hence, with Thanksgiving, Cyber Monday, Black Friday and Christmas lined up, retailers can hope to recover from the coronavirus slump.
Consumer confidence remains above 100, per
the Conference Board’s report on Oct 27. This suggests that spending on luxury, leisure goods, housing, new appliances and cars will most likely edge up in the holiday season. Along with that, the Federal Reserve reported that total consumer borrowing rose by $16.1 billion for September, after rebounding from a $6.9 drop in August. This reflects that American consumers are willing to spend more as they remain hopeful that the economy is recovering from the pandemic’s effects.
In fact, per
Deloitte’s annual holiday retail forecast this year, holiday retail sales are expected to grow between 1% and 1.5%, leading to sales ranging from $1,147-$1,152 billion. Impulsive Spending During Holidays
A major factor that drives sales during the holiday season is --- impulsive buying. Instead of planning, shoppers take decisions in haste, with the offered discounts driving them to buy more. Since holiday sales tend to offer the best prices of the season, consumers are willing to spend more to exploit the opportunity. Additionally, several holiday shoppers have the ‘Fear of Missing Out’ (FOMO).
This holiday season, social media may also play a huge role in driving impulsive purchases. With people spending more time on the web due to the social-distancing restrictions imposed, they can easily connect with social media outlets and buy on impulse. According to an article by
techradar, a research by Visa states that one in four online purchases are now made as a result of interaction with a social media outlet. These social media applications are convenient for shoppers. Pandemic to Push Online Sales Higher
According to an article by
wtop news, Reston and comScore recently released report on the state of online retail spending which underscores that digital commerce now accounts for nearly one-in-four discretionary dollars spent by consumers. With safety a prime concern, shoppers would continue to opt for a safe shopping medium this holiday season.
Per projections drawn by Salesforce.com, mentioned in a
digitalcommerce360.com article, online holiday sales are expected to surge 34%, year over year this holiday season. Hence, for the November-December period, digital revenuesmay hit a record of $221 billion, while total holiday sales will reach $730 billion. 5 Top Choices
Given the encouraging holiday season scenario, we have shortlisted five stocks that can make the most this year. Thesestocks flaunt a Zack Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here . Tapestry, Inc. ( TPR Quick Quote TPR - Free Report) provides luxury accessories and branded lifestyle products. The company’s expected earnings growth rate for the current year is more than 100% against the Zacks Retail - Apparel and Shoes industry’s projected earnings decline of 17%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 21.2% upward over the past 60 days. Rocky Brands, Inc. ( RCKY Quick Quote RCKY - Free Report) designs, manufactures, and markets footwear and apparel. The company’s expected earnings growth rate for the current year is 3.5% against the Zacks Retail - Apparel and Shoes industry’s estimated earnings decline of 19.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 42.4% upward over the past 60 days. Crocs, Inc. ( CROX Quick Quote CROX - Free Report) designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. The company’s expected earnings growth rate for the current year is 63.4% against the Zacks Textile - Apparel industry’s projected earnings decline of 22.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 39.9% upward over the past 60 days. Stamps.com Inc. ( STMP Quick Quote STMP - Free Report) provides Internet-based mailing and shipping solutions. The company’s expected earnings growth rate for the current year is 63.9% compared with the Zacks Internet - Commerce industry’s projected earnings growth of 5.3%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 8.4% upward over the past 60 days. Zumiez Inc. ( ZUMZ Quick Quote ZUMZ - Free Report) operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company, which belongs to the Zacks Retail - Apparel and Shoes industry, has an expected earnings growth rate of 7.4% for the next quarter. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 49.4% upward over the past 60 days. Biggest Tech Breakthrough in a Generation
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