Hot Stock & ETF Deals for Cyber Monday
The holiday season started with a big bang as a large number of Americans shopped online, taking advantage of big deal days. This is especially true as consumers spent a record $9.8 billion shopping online on Black Friday. This reflects an increase of 7.5% from last year's record-setting mark of $9.12 billion, according to Adobe (read: 4 ETFs to Shop This Black Friday).
More than half (54%) of Black Friday online sales were made through smartphones – up from about 48% in 2022 – accounting for $5.3 billion, according to Adobe Analytics. This is the first shopping season in which mobile sales could overtake sales made over desktop computers, the firm estimates.
The solid trend is likely to continue, with Cyber Monday expected to top Black Friday online sales with a record-breaking $12 billion, up 6.6% from last year. For the Cyber Week (defined as the five-day period between Thanksgiving and Cyber Monday), Adobe expects $37.2 billion in online spending, representing 16.8% of total holiday season online sales, which are forecast to reach $221.8 billion between Nov 1 and Dec 31 this year.
A few e-commerce players are expected to benefit the most from Cyber Monday sales:
Hot Retailers
Online behemoth Amazon.com AMZN, which accounts for about one-third of online sales on Cyber Monday, remained the hottest retailer. Amazon's Cyber Monday deals, running from Nov 25-27, include discounts on a range of products like Instant Pot kitchen appliances, Vitamix blenders and Amazon devices. Amazon has a Zacks Rank #2 (Buy) and a VGM Score of B.
Brick-and-mortar chains have also become aggressive in chasing online customers. WalMart WMT Cyber Monday sales began on Nov 26 and featured a variety of deals. Customers will be able to take advantage of some of the most popular brands like Crocs, Little Tykes, Ninja, Shark and so much more. Shoppers can get up to 80% off during the Cyber Monday Deals. Walmart has a Zacks Rank #3 (Hold) and a VGM Score of B.
Target TGT started its Cyber Monday sale on Nov 26. It will run through Nov 27. It has deals on top products, including Samsung TVs, Apple iPads, Dyson vacuums, and clothing, offering up to 60% discounts. TGT has a Zacks Rank #2 and a VGM Score of A.
Best Buy BBY kicked off a two-day "Cyber Monday Savings Event" on Nov 26, which will run through Nov 27 with 50% off on laptops, TVs and more. Best Buy has a Value Score of B. Meanwhile, Costco Wholesale (COST) Cyber Monday deals on Nov 27 include significant discounts on jewelry, computers and electronics. The stock has a Zacks Rank #3 and a VGM Score of B.
Kohl’s KSS launched its "Cyber Weekend Deals" on Nov 25, which will run through Nov 27 in stores and online. The company is offering "deals on hundreds of top gifts" and a 20% discount with free shipping on online orders of $25 or more. KSS has a Zacks Rank #3 and a VGM Score of B.
ETFs on a Roll
While investing in any of these stocks could reward investors this Cyber Monday, a diverse approach in a basket form can also be a great choice. For this, investors can splurge on ETFs that are poised to capitalize on the surge in e-commerce and consumer spending.
Consumer Discretionary ETFs: A Direct Impact
Among the attractive ETF deals, Consumer Discretionary Select Sector SPDR Fund XLY is at the forefront. It is directly linked to consumer spending habits. The fund holds major e-commerce and retail stocks in its portfolio. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 4 Reasons Why Consumer Discretionary Stocks Are a Buy Now).
E-Commerce ETFs: Riding the Digital Wave
Specifically targeting the e-commerce sector, ETFs like the Amplify Online Retail ETF IBUY and the Global X E-commerce ETF EBIZ are in prime position. These funds invest in companies that derive a significant portion of their revenues from online sales, making Cyber Monday a critical event for their performance.
Technology ETFs: The Backbone of Online Retail
Technology ETFs also stand to gain from Cyber Monday sales. As online shopping relies heavily on technology infrastructure, companies providing cloud services, cybersecurity, and payment processing solutions are essential. ETFs like the Technology Select Sector SPDR Fund XLK offer exposure to these vital tech players. XLK has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Logistics and Supply Chain ETFs: Essential for Deliveries
The surge in online orders during Cyber Monday puts a spotlight on logistics and supply chain companies. ETFs focusing on logistics, such as the iShares Transportation Average ETF IYT, which includes courier and delivery services, are likely to benefit from the increased demand for shipping and delivery services. The fund has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: 5 ETFs to Make the Most of Solid Thanksgiving Travel Trend).
Sustainable and Socially Responsible ETFs: A Growing Niche
An interesting trend is the rise of socially responsible investing. ETFs that focus on companies with strong environmental, social, and governance (ESG) practices could see an uptick, as more consumers prefer to shop from sustainable brands. Funds like the iShares Global Clean Energy ETF ICLN and the SPDR SSGA Gender Diversity Index ETF SHE cater to this niche market. Both ETFs have a Zacks ETF Rank #3.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Transportation ETF (IYT): ETF Research Reports
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
iShares Global Clean Energy ETF (ICLN): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
SPDR MSCI USA Gender Diversity ETF (SHE): ETF Research Reports
Global X E-commerce ETF (EBIZ): ETF Research Reports
