5 Solid Stocks to Buy Ahead of a Promising Holiday Season

The holiday season is around the corner and industries likely to benefit from it have high expectations after a year of lull. Predictions are already high that retail sales will rise substantially this holiday season.

Like every year, people will be traveling. This means that the restaurant and travel and leisure industries will benefit. Also hopeful are airline companies that are banking on the holiday season to see air traffic increasing.

Holiday Season Expected to be Good

According to a new study by Alphabet, Inc.’s GOOGL Google, traveling will increase substantially after coming to a standstill last year due to the pandemic. However, the travel pattern will change this holiday season, with most people planning to travel within the country.

According to the study, travelers feel safe traveling this year after taking the COVID-19 vaccine. More than 45% travelers plan to holiday within the own countries this year in early fall, while 8% plan to go to international destinations.

Moreover, 30% to 40% who plan to travel during the holiday season will plan their travel a month or more in advance. Despite fears of the Delta variant of the coronavirus, people are a lot more confident after taking the COVID-19 vaccine and planning to travel this year.

According to a new research, 36% of people across the globe have started traveling. Also, 67% of travel marketers are confident that despite several challenges, travel budget will increase this year, which is a good sign for many industries like hotels, leisure and restaurants.

Gearing Up for the Holiday Season

Preparations are in full swing ahead of the holiday season. Airline companies are already announcing additional flights for the holiday season. United Airlines UAL announced on Oct 7 that it will add 3,600 additional flights in December.

Retailers like Walmart, Inc. WMT and Amazon.com, Inc. AMZN are going on a hiring spree ahead of the holiday season. There are reasons for that as holiday retail sales are expected to rise 9% this year, according to Deloitte.

Air ticket booking has also picked up after a dull August and September. Bookings have recovered at Delta Air Lines (DAL) and are expected to surpass the 2019 levels by next year, the company said.

Our Choices

Two industries that are directly going to be benefited from the holiday season are restaurant, and travel and leisure. This thus makes for an ideal opportunity to invest in these five stocks. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy).

YETI Holdings, Inc. YETI designs, markets and distributes products for the outdoor and recreation market under the YETI brand primarily in the United States. The company’s products are designed for use in outdoor activities, including hunting, fishing, camping, barbecue, and farm and ranch activities, among others. 

The company’s expected earnings growth rate for the current year is 32.6%. The Zacks Consensus Estimate for current-year earnings improved 0.8% over the past 60 days. The company has a Zacks Rank #2.

Chipotle Mexican Grill, Inc. CMG offers a focused menu of burritos, tacos, burrito bowls and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked through traditional methods and served in a unique atmosphere. 

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. Chipotle Mexican Grill carries a Zacks Rank #2.

Dennys Corporation DENN is one of the largest restaurant companies, operating moderately priced restaurants: Denny’s, Hardee’s, Quincy’s, El Pollo Loco, Coco’s and Carrows. 

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. Chipotle Mexican Grill carries a Zacks Rank #2.

Mastercraft Boat Holdings, Inc. MCFT designs, manufactures and markets recreational powerboats through its subsidiaries. The company’s operating segment consists of MasterCraft and NauticStar.

The company’s expected earnings growth rate for the current year is 18.7%. The Zacks Consensus Estimate for current-year earnings has improved 12.6% over the past 60 days. Mastercraft Boat carries a Zacks Rank #1.

McDonald’s Corporation MCD is a leading fast-food chain that currently operates roughly 38,000 restaurants in more than 100 countries. The company mainly operates and franchises quick-service restaurants under the McDonald’s brand. 

The company’s expected earnings growth rate for next year is 49.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. McDonald’sholds a Zacks Rank #2.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
McDonald’s Corporation (MCD) : Free Stock Analysis Report
 
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
 
Denny’s Corporation (DENN) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
MASTERCRAFT BOAT HOLDINGS, INC. (MCFT) : Free Stock Analysis Report
 
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
 
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