Over 100 million shoppers go on a spending spree every year on Black Friday weekend, whether they choose to do so online or in traditional brick and mortar buildings, here are some of the top stocks you can bet will profit from the frenzy.
Additionally, thanks to the pre-holiday effect, the Thanksgiving period has historically benefited from some of the highest average daily stock market performance of the year.
As retailers with significant upside potential, good analyst ratings and solid fundamentals, the following stocks should not only benefit from these combined circumstances, but also outperform their peers.
- United Online Inc. (UNTD)
United Online operates in the online consumer products and services over industry through its brands: Interflora, Memory Lane, Classmates, StayFriends, MyPoints, and NetZero. Their media division operates online loyalty marketing services and sells nostalgia products. The communications division provides internet and web hosting services. The company was founded in 2001 and is headquartered in Woodland Hills, CA.
United Online has a market cap of $248 million, is currently trading at about half its book value, a 5 year PEG ratio of 0.37 and an average analyst price target of $46.83; this represents an implied upside potential of about 150%.
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- Select Comfort Corp. (SCSS)
Select Comfort manufactures and distributes beds and related accessories such as sheets, specialty pillows, headboards, frames, mattress pads. They operate the SleepNumber bed brand name which allows adjustable firmness. The company was founded in 1987, with headquarters in Minneapolis, MN.
Select Comfort has a market cap of over $1 billion, a 5 year PEG ratio of 0.79, a Price to Sales ratio of 1.1 and an average analyst price target of $22.29; this represents an implied upside potential of about 15.5%.
- Urban Outfitters, Inc. (URBN)
Urban Outfitters. is a retail clothing company. It operates two business segments: retail stores and wholesale. The retail section includes the following brands: Urban Outfitters, Anthropologie, Free People, Terrain, Leifsdottir and BHLDN. The retail merchandise is sold through its stores, catalogs, and web sites. The wholesale division designs and markets women's casual clothing. The company was founded in 1970, with headquarters in Philadelphia, PA.
Urban Outfitters has a market cap of $5.8 billion, a 5 year PEG ratio of 1.25, a price to sales ratio of 1.79 and an average analyst price target of $46.21; this represents an implied upside potential of over 16%.
- Abercrombie & Fitch Co. (ANF)
Abercrombie & Fitch operates casual sportswear apparel retail stores and websites. They sell Abercrombie & Fitch, Abercrombie, Hollister, RUEHL and Gilly Hicks branded clothing for men, women and kids. The company was founded in 1892, with headquarter in New Albany, OH.
Abercrombie & Fitch has a market cap of $2.6 billion, a 5 year PEG ratio of 1.56, a price to sales ratio of 0.59, a price to book ratio of 1.56 and an average analyst price target of $39.11; this represents an implied upside potential of over 13.5%.
- Amazon.com Inc. (AMZN)
Amazon.com operates online retail shopping websites and related services for consumers, sellers, enterprises, and content creators. Its marketing and promotional services include online advertising and credit cards. The company's websites also allows third parties to sell their products. Additionally, Amazon manufactures and distributes the Kindle tablet. The company was founded in 1994, with headquarters in Seattle, WA.
Amazon.com has a market cap of $161 billion, a 5 year PEG ratio of 13.58, a price to sales ratio of 2.29 and an average analyst price target of $392; this represents an implied upside potential of almost 11%.