Top Christmas Stocks (ings)For 2021
If you’re a trader, you likely know that right now tis’ the season… to obsess over the potential movers and shakers in this the final throes of the year. But which stocks could be a hit this Xmas? And which would you want in your stocking? Read on to find out…
Making up for last Christmas?
Last Christmas 2020 was a little bit hit and miss, largely thanks to the pandemic-induced lockdowns most of us experienced.
Fast-forward to 2021, while we’re not out of the woods yet, we’re certainly in a better position than we were this time 12 months ago.
So, is it time for manufacturers to make up for lost time? Let’s see…
Top Christmas present stocks
#1 Toys
Demand has been pretty resilient for the toy industry despite potential supply shortages. Well known manufactures, like Mattel and Hasbro have reported decent sales, beating Wall Street expectations. Early planning and stockpiling have proved helpful for many retailers as the industry enters the oh-so-hectic holiday season.
Mattel
Major toy brand, Mattel’s revenue increased 8% YOY to $1.76 billion, according to its Q3 results. Net income came in at $812.6 million.
MAT stock is currently trading around $21.00, up 20% YTD and 60% over the past year. The two biggest earners? Hot Wheels and Barrie! And you can bet that both franchises have a strong Christmas ahead of them.
MAT Stock, YTD
Source: Google
Hasbro
The world class toy maker released its Q3 results on the 26th of October. Revenue was up 11% YOY to $1.97 billion.
In 2019, Hasbro shifted from toys and games into entertainment with the $3.8 billion acquisition of children’s TV and producer Entertainment One. Its TV and film production business is the bit that’s been growing the most this year and is a key factor behind its modest, yet acceptable 6% YTD share growth.
HAS Stock, YTD
Source: Google
It will be interesting to see how the supply crisis dents the company’s performance this quarter. Either way, this is definitely one to watch!
Funko
Everyone’s favourite collectible manufacturer, Funko always does well at this time of the year.
The company announced its Q3 results on the 4th of November. Net sales increased 40% YOY to $267.7 million. Total liquidity stood at $193.2 million, up 81% YOY. Nice results!
FNKO stock has surged 76% year-to-date (YTD) and over 150% over the past year. Time to jump in?
FNKO Stock, YTD
Source: Google
#2 Video games
The fastest moving entertainment medium on the planet hasn’t taken its foot off the accelerator for a second throughout the pandemic. Gaming is one of the few industries almost immune from the supply chain crisis, thanks to digital download services.
The industry shows no signs of slowing, so here are our two top picks for Christmas trading.
Electronic Arts
EA announced its Q2 FY22 results on the 3rd of November. Revenue jumped 59% year-over-year (YOY) from $1.15 billion to 1.83 billion. The company also reported a net income of $294 million.
CEO Andrew Wilson said, “This was the strongest second quarter in the history of Electronic Arts…”
EA Stock, YTD
Source: Google
Stock is down around 10% YTD, which is not great. But, given the company’s track record, traders should be seeing a potential bargain with EA as the stock looks pretty undervalued at this point.
Take-Two Interactive Software
EA’s contemporary, Take Two is a behemoth in the gaming space, boasting major titles, such as Grand Theft Auto V and the NBA 2K franchise. The company has a pipeline of 62 new releases planned between now and March 2024. Busy bees indeed!
Take-Two issued its Q2 fiscal year 2022 results on the 3rd of November. Net revenue increased 2% YOY to $858.2 million. Stock price has struggled this year and is down 17% YTD.
TTWO Stock, YTD
Source: Google
However, given that production schedule and the company’s pedigree, as with EA, there’s a feeling that this could be a sleeping giant. Investors take note.
#3 Big Tech
Last but not least, big tech. It always does well at Christmas. If you’re lucky enough to have an offering from one of these companies in your stocks (ing) this year, well done. And good luck topping it next year!
Apple
Apple has had a strong end to the year, considering the production setbacks seen in China of late. It’s mainly down to the recent, very difficult, prioritisation decision which sees the company prioritise production and shipment of the iPhone 13, even if that means there might be delays in shipping out iPads.
Apple are betting big that you want an iPhone and not an iPad under the tree this year, and it seems to be working. It’s expected that the Cupertino-based company will ship 82 million iPhones in time for Christmas and 235 million more in 2022.
AAPL stock has risen 25% this year and those product sale projections are cause to believe that such growth will only continue as we move into 2022.
AAPL Stock, YTD
Source: Google
Tesla
Top of many a rich-kid’s wish list this year will be the new “Cyberquad for Kids”, which rolled out last week.
It’s a four-wheel all-terrain vehicle (ATV) for children ages 8 and up that resembles the company’s Cybertruck. It costs a hefty $1,900 and, er, it’s awesome! But good luck getting your hands on one. They sold out in a flash!
It’s just another success story for the electric motor giant in what’s been a monumental year.. Stock price has jumped 39% in 2021 so far and with new products like the Cyberquad joining an already popular line-up, it looks like things are heading in the right direction.
TSLA stock, YTD
Source: Google
Have your say!
What do you make of our list? What are you hoping for this Christmas? Tweet us your thoughts at @_Contentworks.
This week in the markets
What’s coming up this week? Let’s have a look.
Monday
No major events scheduled.
Tuesday
● AUD — RBA Interest Rate Decision
● EUR — GDP Growth Rate QoQ 3rd Est (Q3); GDP Growth Rate YoY 3rd Est (Q3)
● CAD — Balance of Trade (OCT)
Wednesday
● JPY — GDP Growth Annualised Final (Q3)
● CAD — BoC Interest Rate Decision
Thursday
● CNY — Inflation Rate YoY (NOV)
Friday
● EUR — Germany Inflation Rate YoY Final (NOV)
● GBP — GDP 3-Month Avg (OCT); GDP YoY (OCT)
● USD — Core Inflation Rate YoY (NOV); Inflation Rate YoY (NOV).
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Speak soon!
The Contentworks team
