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Which Companies Benefit From The Holiday Season Stock Price Jump?

October 10, 2013 2:19 pm
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While the holiday season is typically associated with Christmas carols, chestnuts and picturesque snowfalls, investors see big dollar signs and a means to start the New Year off in strong financial standing.

With that in mind, there are certain stock picks that perform better than others during the year-end season and cashing in is simply a matter of knowing which ones will yield the best return.

On the surface, it sounds like an overstatement of the obvious, but it can be tempting to choose stocks with less research and forethought than during other times of the calendar year because it is easy to assume that all stocks do well during the holiday.

But, that is not the case at all and when it comes to choosing stocks between Thanksgiving and Christmas it behooves the smart investor to be…well, smart.

Here are some of the best stocks heading out of the old year and into the new one.

Mattel (NYSE: MAT)

This toy and game manufacturer has 31,000 employees and a market capitalization of over $14.7 billion. Mattel makes some of the most popular toy brands, such as Barbie, Fisher-Price and Hot Wheels. Even in a down economy, these shiny new toys still show up under the Christmas tree. Mattel is already up over 10 percent this year, though the holiday season has not yet begun.

Hasbro (NYSE: HAS)

Hasbro is another game and toy manufacturer that enjoys a strong market capitalization. Although it employs far fewer people than Mattel (only 5,800 total), Hasbro still represents a terrific buy as a holiday stock. Makers of such toy franchises as Transformers, Hasbro has seen profits from the sales of toys and licensing to Hollywood. The stock began the year at $36.37 and is now trading close to $46.00.

Avon Products (NYSE: AVP)

Long a household name, Avon Products is also one of the best stock picks to put money into any time of the year, but particularly around the holidays. This stock began 2013 trading at just $14.60, and has since climbed to $24.00 before settling at just under $20. Avon is looking to use the holiday season to boost its yearly earnings, and perhaps close the year up over 25 percent.

Koninklijke Philips Electronics (NYSE: PHG)

Electronics manufacturer Koninklijke Philips has had a bit of a rocky ride this year. Beginning the year at $27.06, the stock had many peaks and valleys before beginning a steady upward trend in July. Since then, it has surged to as high as $33.76 before settling at $31.55 in recent trading.

Philips is involved in everything from consumer electronics (a hit during the holiday season) to healthcare, which should see a positive upswing with the roll out of the Affordable Care Act. This makes Koninklijke Philips a sort of “one stop shop” holiday stock for 2013.

Emerging Markets

Okay, so it's not a stock per se, but it is well worth mentioning from an investment standpoint. Nations experiencing rapid growth and industrialization in social or business sectors are ripe for investing and the current global recession has interestingly caused countries like China, Brazil, Mexico, and India to become hot spots for foreign business.

Disclosure: The author holds no positions in any of the equities mentioned in this report.

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