3 Investing Areas to Play Ahead of Easter
As Easter Sunday approaches, shoppers have started their search for chocolate bunnies and various spring-related products to celebrate.A survey conducted by NRF and Prosper Insights & Analytics reveals that 81% of people intend to observe the holiday, with expenditure anticipated to total $22.4 billion, making it the second-highest spending forecast in the history of the Easter survey.
Easter, a time of renewal and celebration, also generates solid sales for various sectors of the economy. As investors look for opportunities to capitalize on seasonal trends, there are a few areas that might see a surge in sales around this holiday.
Confectionery and food production stocks like Hershey (HSY) and B&G Foods BGS, retailers like Kroger KR and Amazon AMZN and vacation providers like Airbnb ABNB are likely to be in focus.
Let’s delve a little deeper:
Confectionery and Food Items
Easter is synonymous with chocolate bunnies, eggs and an array of sweet treats. Companies specializing in confectionery and food production often see a spike in sales during this period. About 89% of the population is likely to indulge in candies versus 87% recorded in 2019 (pre-pandemic), per NRF. About 89% of celebrators are likely to spend on food, up from 85% seen in 2019.
Hershey, carrying a Zacks Rank #3 (Hold), is a giant in the confectionery sector with a significant Easter product line. Zacks Rank #2 (Buy) stock B&G Foods is also an intriguing bet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Retail
Retailers, especially those with a strong online presence, tend to benefit from the Easter shopping spree as consumers purchase gifts, decorations, and supplies for celebrations. Companies that have diversified their inventory to include Easter-related products, from baskets to home decor, can see an uptick in sales.
About 49% of people who will celebrate the event will go for clothes shopping, up from 46% in 2019. About 62% will be engaged in gift shopping, up from 59% in 2019.
Zacks Rank #2 The Kroger Co., with its extensive range of Easter products, from candies to costumes, is well-positioned to capture holiday spending.
Amazon, also a Zacks Rank #2 stock, acts as a one-stop-shop for Easter supplies and is likely to see increased sales.
Travel and Hospitality
As a holiday that encourages family gatherings, Easter can lead to a spike in travel, benefiting airlines, hotels and online booking platforms.
Zacks Rank #2 Airbnb, which facilitates travel accommodations, could see increased bookings.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Hershey Company (The) (HSY) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
B&G Foods, Inc. (BGS) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
