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Hot Stock & ETF Deals for Cyber Monday

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Thanks to the burst of heavy discounts and e-commerce boom, retailers are enjoying one of the best holiday seasons ever. This is especially true as Black Friday and Thanksgiving online sales surged to new record of $7.9 billion, up 17.9% year over year, according to Adobe Analytics (read: Retail ETFs Sizzling on Black Friday Deals).

Black Friday sales soared 16.9% year over year to $5.03 billion while Thanksgiving Day saw a jump of 18.3% to $2.87 billion in online spending. Most of the online sales came from mobiles and smartphones. Given a solid online shopping frenzy, Cyber Monday could become the largest U.S. online shopping day in history.

Adobe Analytics expects Cyber Monday online sales to hit $6.6 billion, surpassing Black Friday sales and increasing 16.5% from last year. The web analytics firm ComScore projects Cyber Monday to fetch $4.5 billion in e-commerce sales, up 22% from $3.68 billion last year. With the same fervor, retailers kicked in Cyber Monday deals early morning and many are stretching those through the Cyber Week.

Retailers on a Roll

Online behemoth Amazon.com AMZN remained the hottest retailer. The company is rolling out more than 30 ‘Deals of the Day’ and thousands of ‘Lightning Deals’ on Cyber Monday. Some unique deals are on Amazon devices and electronics such as a Sony 55-inch 4K UHD smart TV for $598, Echo Show for $179.99 (Reg. $229.99), 30% off on select monitors from Dell and Samsung and Echo Dot for $29.99 ($20 off the regular price). Notably, Amazon’s Echo Dot is touted as the lowest price for the device ever (read: Amazon vs. Walmart: Who Will Win This Holiday Season?).

The company is also offering 30% off on select LEGO sets, 25% off on select Dyson vacuums, and up to 60% off on select athletic and casual shoes. Amazon has a Zacks Rank #3 (Hold) with a Growth Style Score of B.

Brick-and-mortar chains have also become aggressive in chasing online customers. Wal-Mart (WMT - Free Report) kicked off Cyber Monday deals at 12 a.m. The retailer has rolled over some deals from Black Friday, like the Microsoft Xbox One S for $189 (Reg. $279) and Bose QuietComfort Noise-cancelling Headphones for $179 (Reg. $279). Additionally, it is offering new exciting deals such as RCA 55” 4K Roku Smart HDR LED TV for $379 (Reg. $799), Barbie Hello Dreamhouse for $199 (Reg. $299), and the Dyson DC59 Slim Cord-free Vacuum for $189 (Reg. $249).

Wal-Mart has a solid Zacks Rank #2 (Buy), and a Value and Momentum Style Score of A each (read: Wal-Mart ETFs to Buy on Blockbuster Q3 Results).

Target TGT is once again offering 15% off on all items online for the whole week, starting early Monday morning on a range of products including gaming consoles, Beats headphones, Keurigs and televisions. Meanwhile, department store Macy’s M kicked in Cyber Week deals starting Nov 26 through Nov 29 with 60% off on Bella Housewares kitchen appliances, Adidas jackets for $19.99, and 67-piece flatware sets from International Silver for $39.99. Both Target and Macy’s have a Zacks Rank #3 and a Value Style Score of A.

Best Buy BBY kicked off its Cyber Monday sales on Nov 27 with heavy discounts on a slew of products including Apple AAPL products, TVs, cell phones, gaming gear, cameras and smart speakers. Best Buy also has a Zacks Rank #3 and a Value Style Score of A.

Apart from these, several other retailers like Gap GPS, J.C. Penney JCP, and Kohl’s KSS is also drawing investors’ attention with sizzling deals on most products. Each of these stocks has a Zacks Rank #3 (see: all the Consumer Discretionary ETFs here).

ETFs on a Roll

While investing in any of these stocks could reward investors throughout Cyber Week, a diverse approach in a basket form can also be a great choice. For this, investors can splurge on the e-commerce corner of the broad retail/technology industry.

Some of the attractive ETF deals are Amplify Online Retail ETF IBUY, ProShares Decline of the Retail Store ETF EMTY, ProShares Long Online/Short Stores ETF CLIX, First Trust Dow Jones Internet Index FDN and PowerShares Nasdaq Internet Portfolio PNQI.

IBUY offers global exposure to companies that derive 70% or more revenues from online and virtual retail while EMTY and CLIX are designed to benefit from the changing retail landscape from physical stores to online. Meanwhile, FDN and PNQI provide exposure to the Internet space. FDN has a Zacks ETF Rank #2 while PNQI has a Zacks ETF Rank #1 (Strong Buy) (read: New ProShares Retail ETFs to Bet on Store to Online Shift).

Other ETFs like SPDR S&P Retail ETF XRT, VanEck Vectors Retail ETF RTH, S&P SmallCap Consumer Discretionary Portfolio PSCD, and Vanguard Consumer Discretionary ETF VCR also make up for compelling picks. XRT and RTH target the retail sector while PSCD and XLY offer broad exposure to the consumer discretionary space. All these funds have a Zacks ETF Rank #2.

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