Written by Norman Isaac Mwambazi

Best Stocks To Buy For Black Friday 2020

Black Friday is only a few days away and consumers are already gearing to spend some good money as they …

Black Friday is only a few days away and consumers are already gearing to spend some good money as they buy goods and services for themselves and to gift others during the festive season that has already started in different parts of the world.

As people are looking forward to those “unbeatable” Black Friday deals that are most times beatable if you pay a keen eye, investors on the other side are looking forward to those deals that will have them get a reasonable return on their investment whether in the short or long-term.

With the help of our friends from Forbes, we have picked for you what we believe are the best stocks to buy for this year’s Black Friday. Spoiler alert: e-Commerce stocks are the future, according to market analysts.

Sameer Samana, a Chartered Financial Analyst (CFA) and senior Global Market Strategist with Wells Fargo Investment Institute says that their institute currently favours what she termed as Consumer Discretionary that includes major e-Commerce companies that have been successful in the past, but the pandemic conditions like social distancing and “stay at home” have pushed their success even higher.

Although e-Commerce has greatly benefited from the pandemic, Samana advises that investors should not hold more than 15% of stocks from this sector as a percentage of their overall investment portfolio.

Other sectors like technology and communication, electronics and streaming services that have also gained during the pandemic are good options to take up on Black Friday, advises Samana.

It is worth noting that as the pandemic hit the world this year, consumers will adopt a different spending behaviour, which will have an impact on the performance of the stock market.

Due to changes in consumer behaviour, retailers have also changed how they deal with them to maximise profits. One of the ways retailers are doing this is by spreading Black Friday deals across the whole month of November. We have seen retailers and companies make every Friday in November a Black Friday. Talk about a defender changing tactics when the strikers come up with new tricks. 

This new trend, as commented by Josh Simpson, a Financial Advisor with Lake Advisory Group in Lady Lake, Florida, means there may not be a typical boom in Black Friday sales after Thanksgiving. 

That said, here are the companies we feel you should bet on this coming Black Friday. These companies stocks have been performing well and experts expect them to keep doing so since the fundamental factors that propelled their success have not changed much.

E-Commerce Retailers

Amazon (AMZN)

Amazon stock price

This e-Commerce giant whose clod computing division is performing almost as good as its retail business currently trades at $3,087.67 per share.

Dick’s Sporting Goods (DKS)

Based in Coraopolis, Pennsylvania, this American sporting goods retail company employs over 30,000 people in approximately 850 stores. The company is the largest sports goods retailer in the US, with a market capitalisation of $5.32 billion.

Currently, the company’s stock is going for $59.79 per share.  

Etsy (ETSY)

This American e-commerce website focuses on handmade or vintage items and craft supplies like jewellery, furniture, clothing, bags, home décor, art and toys among others.

The company’s stock price is currently $142.10.

Macy’s (M)

Current stock price: $10.45

Nordstrom (JWN)

Current stock price: $23.52

Target (TGT)

This company, which is the eighth-largest retailer in the United States, has its stock going for $176.87

Walmart (WMT)

This retail giant that was founded in 1962 has its stock going for $149.80

e-Commerce-Adjacent Businesses

PayPal (PYPL)

PayPal is arguably one of the most used online payment services for freelancers and e-commerce retailers in the world. Since e-Commerce performed well as a sector during the pandemic, it is only right that PayPal did just the same. Their stock currently goes for $ 197.52 per share. 

Square (SQ)

This Jack Dorsey co-founded American financial services company based in San Francisco, California was listed among the nine high-growth stocks for young investors, and it has appeared on this list as well. This only means one thing: It is worth buying. It is currently trading at $206.64 per share. 

Beauty and Personal Care

Coty (COT)

Current stock price: $6.77

Estee Lauder (EL)

Current stock price: $238.21

Ulta (ULTA)

Current stock price: $282.29

Entertainment

FuboTV (FUBO)

This streaming service that focuses on sports has its current stock price at $26.72.

Netflix (NFLX)

You guessed right. This company has greatly benefited from the social distancing and stay-at-home principles during the pandemic, and experts expect it to keep gaining as we enter into the festive season.

Netflix’s stock price is currently at $481.30 per share.

Peloton Interactive (PTON)

Peloton’s share price fell by 13% after Pfizer and BioNTech announced their breakthrough on a COVID-19 vaccine that is 90% active, but experts picked it as a favourable investment option on Black Friday.

Remember, a drop in the share price of a company can present a good opportunity for more investors to buy its stock now that it is relatively affordable, which in turn makes it rise. It is currently selling at $110.82

Technology

Apple (AAPL)

Investing in Apple stock is as profitable as you can imagine
Investing in Apple stock is as profitable as you can imagine

You know the largest company in the world by market capitalisation had to be on this list. Apple has just released its newest instalment in the iPhone line of gadgets, the iPhone 12, and its different variations.

Its share price is still looking strong and analysts expect the company to post positive results in its Q1 2021 report, so it is currently a good buy. Apple’s stock price currently goes for $114.56 per share.   

Best Buy (BBY)

Best Buy is a good buy. Literally. This consumer electronics retailer that is headquartered in Richfield, Minnesota has its stock going for $122.40.

T-Mobile (TMUS)

As a proponent of the 5G technology, T-Mobile is in a healthy financial situation that reflects on its quarterly reports. Its stock price currently goes for $127.32 per share.

As seen above, we have not mentioned any credit providers. This is because analysts have cautioned investors about investing in that sector because consumers might utilise more credit for their Black Friday spending and this would put credit providers into a higher risk of those consumers defaulting further down the line.

Pierce Crosby, the General Manager of a trading research platform called TradingView notes that this could have an adverse effect on the share price of credit providers, putting into consideration the fact that the economy is already fragile.