Market Overview

5 Stocks for Black Friday

Black Friday is quickly approaching, so it is time to look at companies that could benefit from the shopping mania taking place that day. Traditionally, technology and fashion retailers have attracted the largest numbers of customers, and based on the expectations, this year will not be any different.

Benzinga put together a list of five interesting companies that could get a positive boost from Black Friday sales that could carry on through the rest of the holiday season and the remainder of the fourth quarter.

1. Best Buy (NYSE: BBY)
Market cap $9.91B
P/E Ratio 9.21

Best Buy has seen its market share fall as online retailers like Amazon.com have increased their popularity. However, on Black Friday, consumers tend to go where the lines are the longest to hunt for the best technology bargains. This tendency might set a positive tone for the rest of the quarter, if Best Buy can successfully remind its customers of the benefits of shopping at a brick and mortar store and being assisted by real salespeople.

2. Abercrombie & Fitch (NYSE: ANF)
Market cap $4.31B
P/E Ratio 22.46

This well-known teen fashion retailer is down almost 30% in the last 30 days after missing the Q3 earnings and revenue estimates. Strong Black Friday sales could provide Abercrombie & Fitch with an opportunity to finish Q4 strongly. This is highly dependent on consumers, however. The super committee deadline and European debt crisis have increased uncertainty in the macro environment, which might push consumers towards more lower-end retailers.

3. Kohl's (NYSE: KSS)
Market cap $14.82B
P/E Ratio 13.00

Kohl's reported Q3 EPS of $0.80 versus $0.78 estimates and revenues of $4.38 billion versus $4.40 billion estimates. The revenue miss is a good indicator that middle-class in the United States has seen its purchasing power diminish, which has hurt retailers targeting this consumer segment. The recent job data has been somewhat promising, but it is unclear whether it will help the consumers boost their spending. Thus, Kohl's Black Friday sales numbers can be an important indicator of the current state of confidence among middle-class consumers.

4. Amazon (NASDAQ: AMZN)
Market cap $91.91B
P/E Ratio 106.49

Amazon's Black Friday sales numbers are interesting to watch, as they indicate whether the consumers are getting fed up with queuing up to the online environment also on a day when the brick and mortar retailers have traditionally seen the greatest customer flows. Additionally, Amazon's Kindle Fire sales numbers between Cyber Monday and Black Friday are another area of focus, as they may illustrate how successfully the company has entered the tablet market.

5. SPDR S&P Retail ETF (NYSE: XRT)

The ETF is trying to replicate the performance of the S&P Retail Industry Index. This ETF may be a good choice for bullish traders who believe that the U.S. consumers will increase spending this holiday season instead of being worried about the long-term impacts of widening bond spreads in Europe. XRT also offers exposure to both online and offline retailers. The Retail ETF is up 6.62% year-to-date and strong holiday season sales would ensure the outperformance of S&P 500.

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