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No Trick, 3 Halloween ETF & Stock Treats for Investors
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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.
In fact, 18 to 24 year-old consumers are most likely to celebrate Halloween, with nearly nine in 10 taking part in it this year, up from 84% a decade ago, per nrf.com. Needless to say, the event creates solid business opportunities.
Inside Halloween Spending This Year
National Retail Federation has estimated that Americans will likely spend a staggering $8.8 billion on Halloween candy, costumes and decorations this year. However, the momentum has slowed of late as the last two years saw at least $9 billion in spending. About 15% said tariff concerns will disturb their Halloween plans.
About 95% will likely shell out around $2.6 billion on candies. As much as 67% of consumers will spend about $3.2 billion on costumes and 72% of consumers will likely go for buying decorations worth $2.7 billion. About one-third will throw or attend a Halloween party, 29% will take children trick-or-treating and 17% will get their pets to don Halloween costume, per NRF. Needless to say, retail sales will be on a roll in the upcoming days and put the following ETFs and stocks in focus.
Consumers normally will look for perfect costume idea online. Pinterest Facebook (FB) and YouTube are some of platforms where people search for Halloween ideas. About 48% of Millennials have purchased Halloween items to share them on social media posts. So, online ETF SOCL is highly in focus now (read: Should You Buy Facebook Ahead of Q3 Earnings?).
NRF projects total planned spending for pet costumes at $490 million this year, more than double the figure recorded in 2010. 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 (read: ProShares Brings Pet-Friendly ETF).
Discount stores are busy destinations for Halloween shopping. Dollar General is one of the largest discount retailers in the United States. The stock has a Zacks Rank #2 (Buy) with a VGM Score of B, at the time of writing. It comes from a top-ranked Zacks industry (top 11%).
Candy and chocolate sales are hot leading up to Halloween. The Zacks Rank #2 company is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. It comes from a top-ranked Zacks industry (top 1%).
With all the celebration around, who can get forget Amazon – a hot destination of online shopping for costumes, home decor and candies? Though the stock has a Zacks Rank #3 (Hold), it comes from a top-ranked Zacks industry (top 22%).
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No Trick, 3 Halloween ETF & Stock Treats for Investors
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.
In fact, 18 to 24 year-old consumers are most likely to celebrate Halloween, with nearly nine in 10 taking part in it this year, up from 84% a decade ago, per nrf.com. Needless to say, the event creates solid business opportunities.
Inside Halloween Spending This Year
National Retail Federation has estimated that Americans will likely spend a staggering $8.8 billion on Halloween candy, costumes and decorations this year. However, the momentum has slowed of late as the last two years saw at least $9 billion in spending. About 15% said tariff concerns will disturb their Halloween plans.
About 95% will likely shell out around $2.6 billion on candies. As much as 67% of consumers will spend about $3.2 billion on costumes and 72% of consumers will likely go for buying decorations worth $2.7 billion. About one-third will throw or attend a Halloween party, 29% will take children trick-or-treating and 17% will get their pets to don Halloween costume, per NRF. Needless to say, retail sales will be on a roll in the upcoming days and put the following ETFs and stocks in focus.
ETF Picks
VanEck Vectors Retail ETF (RTH - Free Report)
Several discount retailers like Costco (COST - Free Report) , Ross (ROST - Free Report) , Dollar General (DG - Free Report) and Wal-Mart (WMT - Free Report) have solid exposure to this fund. Notably, 42% of respondents told NRF they will hit department stores and 25% will head grocery stores and 23% will shop at departmental stores, making this broader retail ETF a perfect buy for Halloween (read: Top-Ranked Sector ETFs to Buy for Q4).
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. About 48% of Millennials have purchased Halloween items to share them on social media posts. So, online ETF SOCL is highly in focus now (read: Should You Buy Facebook Ahead of Q3 Earnings?).
ProShares Pet Care ETF (PAWZ - Free Report)
NRF projects total planned spending for pet costumes at $490 million this year, more than double the figure recorded in 2010. 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 (read: ProShares Brings Pet-Friendly ETF).
Stock Picks
Dollar General Corporation (DG - Free Report)
Discount stores are busy destinations for Halloween shopping. Dollar General is one of the largest discount retailers in the United States. The stock has a Zacks Rank #2 (Buy) with a VGM Score of B, at the time of writing. It comes from a top-ranked Zacks industry (top 11%).
Hershey Company (HSY - Free Report)
Candy and chocolate sales are hot leading up to Halloween. The Zacks Rank #2 company is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. It comes from a top-ranked Zacks industry (top 1%).
Amazon.com Inc. (AMZN - Free Report)
With all the celebration around, who can get forget Amazon – a hot destination of online shopping for costumes, home decor and candies? Though the stock has a Zacks Rank #3 (Hold), it comes from a top-ranked Zacks industry (top 22%).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>