For immediate release
Chicago, IL – November 23, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Chipotle Mexican Grill CMG, DDS by Dillard, American Airlines Group AAL, Canadian National Railway CNI and MakeMyTrip Ltd. MMYT.
Here are the highlights from Tuesday’s analyst blog:
5 stocks promising abundant gains this Thanksgiving week
With the start of Thanksgiving week, investors are bullish on US equities, given its history of strong stock market performance. This is especially true as the holiday-shortened week is usually a bullish feast for equity investors, even with low volumes, as consumer spending is expected to pick up.
Consumer spending is expected to hit $125 billion, up 10% year over year, this Thanksgiving weekend, despite higher inflation and higher interest rates. This would propel the economy and stocks higher.
To exploit the trend, investors could reap strong gains by investing in stocks of industries that are likely to benefit the most this week. Some of them are Chipotle Mexican Grill, Dillard’s, American Airlines Group, Canadian National Railway and MakeMyTrip Ltd.
These stocks have a Zacks rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a Growth Score of B or better. They have also witnessed a positive revision in earnings estimates for the holiday quarter over the past 30 or 60 days. You can see the full list of today’s Zacks #1 Rank stocks here.
Solid historical trends
Although high inflation, aggressive Fed rate hikes and recession fears have hurt the stock market, rising consumer spending should give equities a boost this week. Thanksgiving week brought modest gains for stocks dating back to 1945, according to Bespoke Investment Group.
The researchers say that since then, the entire week of Thanksgiving has averaged a 60 basis point gain for the S&P 500, with the best returns coming on the Wednesday before the holidays and Black Friday and the only decline on average on Monday through beginning of the week.
According to the researchers, the S&P 500 index has gained 0.54% on average during the week over the past 50 years, with 68% of returns positive.
According to the National Retail Federation, a record 166.3 million people plan to shop from Thanksgiving Day to Cyber Monday this year. This is 8 million more people than last year and is the highest estimate since NRF began tracking this data in 2017.
Americans will spend $125 billion, up 10% from last year. About 89% of consumers expect to shop in the period beginning on Thanksgiving Day and ending on Cyber Monday, despite worries about inflation and rising interest rates.
Black Friday continues to be the most popular shopping day, with 69% planning to splurge, followed by 38% on Cyber Monday. Of the 114.9 million Black Friday shoppers, 67% say they expect to visit stores, up from 64% in 2021.
Searching online (43%) remains the most popular source of inspiration for gifts, followed by friends and family (35%) and in a retail store (31%). The top five gift categories consumers plan to give are clothing (55%), followed by gift cards at 45%, toys at 37%, books/music/movies/video games at 33%, and food/sweets at 31%.
Travel service provider American Automobile Association (AAA) expects 2022 to be the third-busiest Thanksgiving travel season in the United States in two decades.
About 54.6 million people will travel 50 miles or more from home this Thanksgiving. This represents a 1.5% increase over last year and represents 98% of pre-pandemic volumes. Of these, 49 million (up 0.4% from last year) will take road trips, 4.5 million (up 8%) will take planes and the remaining 1.4 million ( up 23%) will travel by train, bus or cruise.
However, Americans are bracing for a pricey Thanksgiving this year, with double-digit increases in the price of turkey, potatoes, stuffing, canned pumpkin and other staples. The average cost to serve 10 people for Thanksgiving is expected to be $64.05 (or less than $6.50 per person), up 20% from last year’s average of $53.31, according to the American Farm Bureau Federation’s annual Thanksgiving dinner cost survey. Higher prices should benefit catering businesses.
Shower Earnings Stocks
Mexican Chipotle, together with its subsidiaries, operates chains of fast-casual Mexican restaurants. Chipotle restaurants offer hormone-free free-range pork, natural chicken and other meat products cooked using traditional methods and served in a unique atmosphere. The company has a market cap of $41.6 billion.
Chipotle Mexican saw a strong earnings estimate revision of 38 cents in the past month for the holiday quarter. The title carries a Zacks rank of No. 2 and a growth score of A.
Dillard’s is a large chain of department stores offering fashion clothing and home furnishings. It also sells its wares over the Internet to www.dillards.com. Stores are primarily located in the Southwest, Southeast, and Midwest regions of the United States.
Dillard’s witnessed a strong earnings estimate revision of $2.37 for the current quarter in a month. With a market capitalization of $6.2 billion, DDS has a Zacks Rank #1 and a Growth Score of B.
American airlines, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C., as well as through partner gateways in London, Madrid, Seattle/Tacoma, Sydney and Tokyo. AAL has a market cap of $9.1 billion.
American Airlines saw a strong earnings estimate revision of 41 cents over the past 30 days for the holiday quarter. He has a Zacks rank of No. 3 and a growth score of B.
Canadian National operates in the rail transport and related transport sector. It operates as the largest rail network in Canada and is the only transcontinental network in North America. Canadian National saw a positive earnings estimate revision of three cents in the past month for the holiday quarter.
Canadian National has a market capitalization of $84.2 billion. He has a Zacks rank of No. 3 and a growth score of B.
MakeMyTrip is an online travel services company, which provides travel products and solutions in India and the United States. The Company’s services and products include air tickets, personalized vacation packages, hotel reservations, train tickets, bus tickets, car rentals and insurance access facilitation. travel. MakeMyTrip has witnessed a strong earnings estimate revision of 5 cents for the current quarter in the past 30 days.
With a market capitalization of $3 billion, MMYT has a Zacks Rank #2 and a Growth Score of A.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
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This company could rival or surpass other recent Zacks stocks which are expected to double like Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one year .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.