With Black Friday and Cyber Monday behind us, it's time to focus on a festive and lucrative time of year - Hanukkah, which starts at sundown on Thursday. The best stocks to buy on Hanukkah will be the ones that provide value and growth year-round but can also get a nice boost during the holiday shopping season.
During these troubling times, we can still dust off the menorah, celebrate with family, and honor our traditions. At the same time, we can consider a variety of opportunities to grow our portfolios with three Hanukkah-themed investments that could gift us with profits throughout 2024.
Shoppers are spending huge quantities of money on Hanukkah gifts this holiday season. Sure, they already bought gifts for children on Black Friday and Cyber Monday, but not everyone planned their shopping ahead of time. Besides, Hanukkah requires not just one gift, but eight of them, so don't assume that the toy-buying spree is over yet.
Two giant toy manufacturers that should generate powerful profits in December are Hasbro (NASDAQ:HAS) and Mattel. To hedge your bets and diversify your portfolio a bit, you could consider a share position in both companies.
Yet, a head-to-head comparison leans toward Mattel over Hasbro. As we'll see in a moment, Mattel is heavily favored by the analyst community. Meanwhile, analysts generally consider Hasbro stock a Moderate Buy, which isn't bad, but it's not anything to write home about.
Mattel, in contrast, looks like a huge potential winner because of Barbie's recent resurgence. Kids and adults flocked to the Barbie movie, and this translated to a bump in quarterly doll sales. So, MAT stock could be a high-growth runner as parents scramble to get last-minute gifts for their kids, and maybe even for themselves as well.
What is the Price Target for Mattel Stock?
On TipRanks, MAT is a Strong Buy based on eight unanimous Buy ratings assigned in the past three months. The average Mattel stock price target is $24.14, implying 27.25% upside potential.
I must admit that one of my favorite things about Hanukkah has always been those foil-wrapped chocolate coins. Sure, they're available online year-round, but Hanukkah gives me an excuse to unwrap and eat them to my heart's content.
Thinking of this turns my attention to chocolate makers as a possible investment. I've heard it said that companies like Cadbury chocolate manufacturer Mondelez International (NASDAQ:MDLZ) and Hershey tend to be recession-proof, or at least recession-resistant.
Hence, it's fine to consider both of these companies, but I'm picking Hershey stock as my favorite for several reasons. First and foremost, I checked Hershey's earnings and revenue history chart and observed consistent growth in the company's revenue and earnings.
Speaking of earnings, Hershey has a terrific track record of beating Wall Street's consensus quarterly EPS forecasts. On top of all that, Hershey offers a nice gift every three months in the form of dividend distributions. Specifically, the company's dividend yield of 2.33% exceeds the sector average yield, so I invite you to consider collecting some tasty dividends with HSY stock.
What is the Price Target for Hershey Stock?
On TipRanks, HSY is a Moderate Buy based on six Buys and 11 Hold ratings given in the past three months. The average Hershey stock price target is $213.65, implying 12.92% upside potential.
Other ideas for Hanukkah stocks might include candle makers or olive oil producers since we light the menorah with olive oil. However, the businesses that manufacture these products aren't typically listed on a major U.S. stock exchange. On the other hand, legions of shoppers will buy these items at the big-box behemoth, Walmart.
It's possible to purchase candles, olive oil, and other Hanukkah-associated goods online, but many people would prefer to simply pick them up locally at Walmart. Why fight this trend as an investor?
Moreover, Walmart usually beats analysts' quarterly consensus EPS estimates and is known to slowly but surely increase its dividend payouts. Also, bear in mind that Walmart owns Sam's Club, where shoppers look for prime deals for Hanukkah and throughout the year.
Like Hershey stock, Walmart stock is generally low-volatility and somewhat recession-resistant. Therefore, I'm considering a share stake in Walmart for December as well as for the coming year.
What is the Price Target for Walmart Stock?
On TipRanks, WMT comes in as a Strong Buy, based on 25 Buys and five Hold ratings. The average Walmart stock price target is $180.79, implying 17.4% upside potential.
From Mattel to Hershey and even Walmart, the brands that remain strong during the eight days of Hanukkah are resilient in all seasons. It just goes to show that a solid business can offer value and growth regardless of the time of year.
Nonetheless, Hanukkah is a time for joy and reflection, and it's also a great time to re-evaluate your portfolio's holdings. Feel free to light that first candle, then, and consider adding a few shares of MAT, HSY, and WMT stock for the holidays and beyond.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.