Add These 4 Promising Stocks To Your Cyber Monday Cart
Zacks Investment Research | Nov 24, 2017 12:30AM ET
Black Friday usually offers a galore of shopping deals but Cyber Monday is likely to be more tempting. Bargain hunters are expected to take to the Internet on Cyber Monday (Nov 27), which is anticipated to be the busiest online shopping day in history.
Many Americans prefer not to visit stores a day after an engaging Thanksgiving, primarily to avoid long queues. Tempting discounts on highly sought-after products is another attraction.
According to a recent survey by National Retail Federation, as many as 78 million Americans, representing 48% of consumers, prefer shopping on Cyber Monday. This is way higher than 36% and 34% that planned to shop for Cyber Mondays during 2016 and 2015, respectively.
Cyber Monday to See Record Sales
This Cyber Monday is expected to be the largest online shopping fiesta of all times, according to Adobe Systems Incorporated (NASDAQ:ADBE) . The company projects online sales at $6.6 billion, up 16.5% from the year-ago level.
Already the customers have expended as much as $28.6 billion online in the first 21 days of this month, almost 18% higher than the year-ago level, per a report by Adobe. Also, each day recorded more than $1 billion of sales.
It gets more interesting from here. As per Adobe’s projections, online spending this holiday season (Nov1 to Dec 31) will reach a record mark of $107.4 billion, significantly higher than $94.4 billion, $82.5 billion and $67.9 billion during the comparable periods of 2016, 2015 and 2014.
According to media reports, majority of analysts expect Amazon.com, Inc. (NASDAQ:AMZN) , one of the major players in the online business, to steal the limelight this holiday season. CNBC added that Amazon will likely serve nearly half of the online shoppers this holiday season.
Strong Job Data Hint at High Consumer Spending
Consumers are looking at convenience factors more than ever this year. Lower-priced goods, free shipping and product availability are the primary factors driving online shopping this season.
Strong economic indicators like record job data and declining unemployment rate are encouraging shoppers to spend billions of dollars online. As per the Bureau of Labor Statistics, the domestic economy generated 261,000 new jobs in October, the highest so far in 2017. Also, the unemployment rate of 4.1% in the month is the lowest this year.
Impressive third-quarter results and record quarterly GDP numbers reflect the economy’s financial strength. Additionally, personal income increased by $66.9 billion or 0.4% in September, while disposable personal income that measures the total amount of money available for use after taxes rose by $73.6 billion, or 2.1%, in the third quarter, according to the Bureau of Economic Analysis.
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Which Online Retailers to Pick?
With this year’s Cyber Monday poised to be a record setter, investing in fundamentally sound online retailers is likely to be prudent. Now, the challenge is to zero in on such stocks given that the online spending by the U.S shoppers will keep on rising. We have employed our proprietary Zacks Investment Research
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