5 Ways To Get Ahead of the Black Friday Craze

5 Ways To Get Ahead of the Black Friday CrazeThe day after Thanksgiving, Black Friday, has become the opening day of the holiday shopping season. Consumers full on early turkey dinners will line up around stores ready to spend, and retailers are eager to attract shoppers with big discounts and door buster promotions.

But the idea that Black Friday marks a bullish phase in consumer discretionary investing is now a myth. Consumers are cash-strapped, retailers are better at managing inventory, and online shopping is distorting the dynamics of shopping.

Investors can get ahead of the pack in trying to predict the winners on Black Friday. Here are the ways to do so:

1) Look for Companies Offering deals sooner

Associated Press reported that The Walt Disney Company (NYSE:DIS), Sears Holdings Corporation (NASDAQ:SHLD), and Kohl’s Corporation (NYSE:KSS) are offering deals ahead of Black Friday. Wal-Mart Stores, Inc. (NYSE:WMT) is also discounting products a few hours earlier as they cut prices late on Thanksgiving day.  Wal-Mart, Sears, Kmart and Toys R Us will all open stores at 8 p.m. Thanksgiving day.

2) Browse coupon and deal-finding aggregators.

Associated Press listed a number of web sites to find shopping deals. bradsdeals.com and blackfriday.com were two sites that were listed.

3) Use Social Media

Social media is also another way to get alerts on shopping deals and store hours. Liking a page on Facebook Inc (NASDAQ:FB) or searching for trends on Twitter or Google+ may be useful. Investors should look out for companies giving too steep a discount: this would hurt profit margins

4) Anticipate Electronics To Do Well Again

Nintendo Co., Ltd (PINK:NTDOY) is releasing its Wii U. Activision Blizzard, Inc. (NASDAQ:ATVI) released another version of Call of Duty. LCD TV’s are already saturated, so expect companies relying on TV sales to get no upside from Black Friday.

5) Go To eBay Inc (NASDAQ:EBAY) and Amazon.com, Inc. (NASDAQ:AMZN)

eBay and Amazon are the biggest online retailers. Deals offered there will give investors an idea on trending consumer goods. Not to be forgotten, Overstock.com, Inc. (NASDAQ:OSTK)‘s homepage features a countdown to Black Friday and advertises big discounts.

Business Section: Investing Ideas

Black Friday could provide a lift for the retailing sector, but it will be of little help for companies in a long-term struggle. J.C. Penney Company, Inc. (NYSE:JCP), whose sales fell 27% in the last quarter, is having trouble attracting sales with its new boutique concept.

GameStop Corp. (NYSE:GME) is facing chronic challenges as game-makers reduce re-sales for used games and promote digital-downloading and add-ons.

Sears Holdings Corporation (NASDAQ:SHLD), The Gap Inc. (NYSE:GPS), and Best Buy Co., Inc. (NYSE:BBY) are planning special deals and earlier store hours. Staples, Inc.(NASDAQ:SPLS) will be promoting technology, discounting Hewlett-Packard Company (NYSE:HPQ) computers.

Black Friday kicks off the holiday shopping season, which can generate as much as 40% of a company’s total annual retail sales. We feel this important event deserves a closer look:

Amazing Thanksgiving Infographic! Stock picks for Black Friday & Cyber Monday

Looking for more ways to trade the Black Friday and Cyber Monday trend? Consider adding following stocks to your watch list:

OTHER POPULAR RETAILERS


1. Target Corp. (TGTEarningsAnalystsFinancials): Operates general merchandise stores in the United States. Market cap at $40.89B, most recent closing price at $62.44.

Similar to Wal-Mart, Target has several door buster deals and plans to open stores on Thanksgiving day, at 9pm. It has received complaints that their determination to boost sales comes at the expense of their employees’ Thanksgiving evening. Target has responded by claiming their decision to open at 9pm reflects consumers’ preference to shop right after their dinner. They also claim employee preferences are taken into account when scheduling Thanksgiving shifts.

2. Macy’s, Inc. (MEarningsAnalystsFinancials): Operates department stores and Internet Web sites in the United States. Market cap at $15.84B, most recent closing price at $39.34.

Macy’s has always been a popular shopping destination, especially for the mall scene. The store is a natural beneficiary of the black Friday rush to other popular shops in malls and shopping strips. Macy’s is offering online Black Friday specials online Thursday November 22nd through Saturday November 24th. Stores will open at midnight through 1pm on Friday, November 23rd. Their website features several holiday deals, and a phone app so shoppers can receive in-store alerts on Black Friday specials.

3. Saks Incorporated (SKSEarningsAnalystsFinancials): Operates fashion retail stores in the United States. Market cap at $1.51B, most recent closing price at $9.90.

Saks Fifth Avenue represents some of the higher end retailers, including Nordstrom, Inc. (NYSE:JWN), Tiffany & Co.(NYSE:TIF). Like Macy’s these are common retailers in malls. But unlike Macy’s, these stores are offering consumers who might be scared away by rowdy crowds a more “white glove” experience.

Typically these high-end retailers do not offer promotions during the holidays. Although Saks made an exception last year offering discounts neat 70% off on popular brands, SmartMoney has predicted this year discounts will be “few and far between.” Saks has yet to announce their Black Friday hours.

4. HSN, Inc. (HSNIEarningsAnalystsFinancials): Markets and sells a range of third party and private label merchandise primarily in the United States. It operates as an interactive multi-channel retailer, offering retail experiences through various platforms, including television, online, mobile, catalogs, and retail and outlet stores. Market cap at $2.69B, most recent closing price at $49.60.

HSN, owner of the Home Shopping Network, is already a popular retailer. It will begin offering Black Friday deals and coupons as early as November 21.

SHIPPING

As items purchased online must be shipped, FedEx and UPS are without a doubt one of the biggest beneficiaries of Cyber Monday.

It’s been reported that “FedEx is forecasting a 13 percent increase in shipping this holiday season as compared with last; UPS predicts a 10 percent increase; and the U.S. Postal Service expects a whopping 20 percent jump in the number of packages shipped between Thanksgiving and Christmas.”

5. FedEx Corporation (FDXEarningsAnalystsFinancials): Provides transportation, e-commerce, and business services in the United States and internationally. Market cap at $27.18B, most recent closing price at $86.54.

“FedEx predicts it will ship 280 packages, an increase from the 247 million packages last year.” FedEx says it will add 20,000 holiday workers to handle the 13% boost.

6. United Parcel Service, Inc. (UPSEarningsAnalystsFinancials): Provides transportation, logistics, and financial services in the United States and internationally. Market cap at $67.1B, most recent closing price at $70.33.

“UPS expects to move 527 million packages between Thanksgiving and Christmas this year, exceeding last year’s record of 480 million packages.”

This article was originally written by Chris Lau and Rebecca Lipman, and posted on Kapitall.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!