Heading into the Thanksgiving week, U.S. stocks have been on a smooth ride buoyed by vaccine optimism and the potential for a divided government even with the spike in new coronavirus cases, which is weighing on investors’ sentiment.
History shows that the holiday-shortened week is a bullish feast for stock investors –– even those with low volumes. Per the article on yahoo finance, the S&P 500 Index has gained 0.59% on average during the week over the past 50 years and the week is positive 70% of the time. The index generally struggles in the first couple of days of the week but the day before Thanksgiving and the day after have been impressive for the stocks. The day before Thanksgiving has been positive 78% of the time, averaging a gain of 0.3% while the day after Thanksgiving has averaged a 0.2% return over the past 50 years and has been positive 66% of the time. Given the historical trends, this Thanksgiving week is expected to shower gains though the celebrations seem different with fewer gatherings and social distancing, and perhaps even remote family get togethers. While a record number of new COVID-19 cases and travel warnings from the Centers for Disease Control have taken away the sheen from the transportation sector, restaurants, food and beverage sectors will continue to shine. Plus, e-commerce and online channels will also get a boost this Thanksgiving week as the pandemic has led to an accelerated shift to e-commerce. According to the latest data from the American Farm Bureau Federation, the average cost of serving 10 people for Thanksgiving is expected to be $46.90 (or under $5.00 per person), 4% cheaper than last year and the lowest since 2020. The shopping list includes a 16-pound turkey, stuffing, sweet potatoes, rolls and butter, green peas, fresh cranberries, a vegetable tray, a homemade pumpkin pie, whipped cream, and coffee with milk. A report from LendingTree showed that Americans will spend $475 hosting Thanksgiving, including food, drink and home decor, up 53% from 2019, with smaller get togethers. About 41% of Americans plan to host guests on Thanksgiving, up from 33% in 2019. Thanksgiving hosts are expected to shell out $343.26 on food and drink, plus $131.74 on new houseware like dishes, furniture, linens and décor. Hosts will spend an average of $52.78 per guest. Investors could take advantage of this week’s historically bullish feast with the stocks in the food, beverages, e-commerce and remote working industries. These stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), VGM Score of B or better, and a positive earnings estimate revision for the holiday quarter over the past one month: Brinker International Inc. ( EAT Quick Quote EAT - Free Report) It primarily owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The stock saw solid earnings estimates revision of 17 cents over the past month for the holiday quarter and carries a Zacks Rank #1. It has a VGM Score of B. You can see . the complete list of today’s Zacks #1 Rank stocks here Constellation Brands Inc. ( STZ Quick Quote STZ - Free Report) This company produces and markets beer, wine and spirits. It is the third-largest beer company and a leading, high-end wine company in the United States. The stock has seen positive positive earnings estimate revision of 4 cents over the past 30 days for the holiday quarter. The stock has a Zacks Rank #3 and VGM Score of B. Travelzoo Inc. ( TZOO Quick Quote TZOO - Free Report) This Internet media company is engaged in the provision of information to subscribers and website users about travel, entertainment and local deals available from companies. The stock saw positive earnings estimate of 4 cents for the current quarter in a month. It has a Zacks Rank #2 and VGM Score of A. The Kraft Heinz Company ( KHC Quick Quote KHC - Free Report) This is one of the largest consumer packaged food and beverage companies in North America. The stock saw solid earnings estimate of 5 cents for the current quarter in a month. It has a Zacks Rank #3 and VGM Score of A. The ODP Corporation ( ODP Quick Quote ODP - Free Report) It is one of the leading providers of business services, products and digital workplace technology solutions through an integrated B2B distribution platform. The stock saw solid earnings estimate revision of 58 cents over the past 30 days for the holiday quarter. The ODP Corporation has a Zacks Rank #1 and VGM Score of A. Biggest Tech Breakthrough in a Generation
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