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Stock & ETF Treats for This Halloween

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Gone are the days when Halloween used to be a spooky event. Halloween is also no more specific to kids dressing up as ghosts and ghouls, and trick-or-treating. It is more of a party event now.

Per NRF, participation in Halloween-related activities will bounce back to pre-pandemic levels, with 69% of consumers planning to celebrate the holiday this year, up from 65% in 2021 and comparable to 68% in 2019. Total spending is likely to be $10.6 billion, up from $10.1 billion recorded in 2021 and $8.8 billion in 2019.

As retailers brace for a holiday season, many are planning to boost sales early by flaunting a wider assortment of Halloween merchandise. Even if consumers are cutting back on spending elsewhere, they say Halloween gives people an opportunity to get into the holiday spirit with relatively cheap celebrations before Thanksgiving and Christmas. The kick around Halloween also comes on the heels of easing COVID-19 restrictions.

The top ways consumers plan to celebrate include handing out candy (67%), decorating their home or yard (51%), dressing up in costume (47%), carving a pumpkin (44%) and throwing or attending a Halloween party (28%). Similar to last year, one in five plan to dress their pet up in a costume.

ETF Picks

VanEck Vectors Retail ETF (RTH - Free Report)

The underlying MVIS US Listed Retail 25 Index tracks the overall performance of companies involved in retail distribution, wholesalers, on-line, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers.

SPDR S&P Retail ETF (XRT - Free Report)

The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The Retail Index is a modified equal weight index. The fund charges 35 bps in fees.

ProShares Pet Care ETF (PAWZ - Free Report)

The NRF said that one in five consumers plan to dress up their pets in a costume, as quoted on retaildive. Pet spending is also expected to exceed 2021’s record high sales, hitting $710 million. This very well makes PAWZ a buy. The fund consists of U.S. and international companies that potentially stand to benefit from interest in, and resources spent on, pet ownership.

Global X Social Media ETF (SOCL - Free Report)

Consumers normally will look for perfect costume idea online. Pinterest, Facebook (FB) and YouTube are some of platforms where people search for Halloween ideas. So, online ETF SOCL is highly in focus now.

Stock Picks

Home Depot (HD - Free Report)

Home Depot loaded a wide range of spooky lawn ornaments, including giant mummies and skeleton. It offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products and related services. The stock has a Zacks Rank #2 (Buy).

Lowe's Companies (LOW - Free Report)

Lowe’s has also launched a 12-foot mummy to compete with Home Depot. Lowe’s Companies has evolved as one of the world’s leading home improvement retailer, offering services to homeowners, renters and commercial business customers. The stock has a Zacks Rank #3 (Hold).

Target (TGT - Free Report)

Target executives expressed high hopes for sales of costumes, haunted house cookie building sets and other Halloween merchandise, even after slashing the company’s profit outlook twice, per CNBC. Target provides an array of goods ranging from household essentials and electronics to toys and apparel for men, women and children. The stock has a Zacks Rank #3.

Hershey (HSY - Free Report)

Candy and chocolate sales are hot leading up to Halloween. The company is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. The stock has a Zacks Rank #3.

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