{"id":59088,"date":"2023-11-15T06:00:56","date_gmt":"2023-11-15T11:00:56","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=59088"},"modified":"2023-11-24T09:31:01","modified_gmt":"2023-11-24T14:31:01","slug":"4-stocks-to-buy-before-black-friday-2023","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/","title":{"rendered":"4 Stocks to Buy Before Black Friday 2023"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Black Friday, a renowned shopping holiday, is rapidly gaining popularity worldwide. The fervor surfaces like clockwork every year. The event signals the onset of the festive retail period, where vendors entice consumers with considerable discounts and appealing deals on merchandise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consumers\u2019 scramble for long-desired products is typically the culmination of months of intense preparation undertaken by retailers, warehouse supervisors, and distribution center managers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Financial analysts conventionally consider the sales returns on Black Friday to outline prevailing consumer confidence. For retail entities, Black Friday has consistently offered an immense financial uplift. Many consumers leverage the occasion to fulfill their Christmas shopping needs at competitive prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With persistent escalations in living costs pressurizing household budgets,<\/span><a href=\"https:\/\/www.bcg.com\/press\/9november2023-black-friday-cost-of-living-crisis-drives-hunt-for-bargains\"> <span style=\"font-weight: 400;\">74% of consumers<\/span><\/a><span style=\"font-weight: 400;\"> intend to exploit the November sales extravaganza in 2023. The National Retail Federation forecasts that<\/span><a href=\"https:\/\/fox59.com\/news\/experts-forecast-busy-holiday-shopping-season-ahead-of-black-friday\/\"> <span style=\"font-weight: 400;\">holiday spending<\/span><\/a><span style=\"font-weight: 400;\"> will increase annually by 3% to 4%. This year's total festive spending is anticipated to range between $957.3 billion and $966.6 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Black Friday is transitioning from physical store-bound activity to being predominantly digital. In 2022,<\/span><a href=\"https:\/\/www.techtarget.com\/whatis\/feature\/Black-Friday-statistics\"> <span style=\"font-weight: 400;\">69% of Black Friday shopping occurred online<\/span><\/a><span style=\"font-weight: 400;\">, as consumers splurged a<a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/adobe-says-black-friday-online-sales-hit-record-9-bln-2022-11-26\/\"> record-breaking $9.2 billion<\/a><\/span><span style=\"font-weight: 400;\">, according to data from Adobe Analytics. Furthermore, logistical operations for this retail marathon require meticulous strategizing by retail managers, leading to millions in annual outlay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As digital transactions encroach on the week-long event, it carries notable implications for delivery logistics. Notably, while retailers profit from the holiday season, package delivery services also stand to reap considerable benefits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Considering this backdrop, it is pertinent to examine why<\/span><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NYSE_UPS\"> <span style=\"font-weight: 400;\">United Parcel Service, Inc. (UPS)<\/span><\/a><span style=\"font-weight: 400;\">,<\/span><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NYSE_FDX\"> <span style=\"font-weight: 400;\">FedEx Corporation (FDX)<\/span><\/a><span style=\"font-weight: 400;\">,<\/span><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NASDAQ_EBAY\"> <span style=\"font-weight: 400;\">eBay Inc. (EBAY)<\/span><\/a><span style=\"font-weight: 400;\">, and<\/span><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NYSE_BBY\"> <span style=\"font-weight: 400;\">Best Buy Co., Inc. (BBY)<\/span><\/a><span style=\"font-weight: 400;\"> could be solid investments this festive season.<\/span><\/p>\n<p><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NYSE_UPS\"><b>United Parcel Service, Inc. (UPS)<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">With a market cap of over $121 billion, UPS is a logistics behemoth that offers various integrated solutions for customers scattered across more than 200 locations worldwide.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite its significant standing, the company has been grappling with an assortment of challenges throughout this year. These range from a weakening demand due to economic slowdown to expensive, drawn-out labor contract negotiations, all translating into a forecasted decline in the company\u2019s revenue and earnings for the current fiscal year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The protracted labor talks significantly distorted UPS' earnings during the year. The resulting five-year contract led to a whopping $500 million upfront expenses in the third quarter alone. At the same time, the extended negotiations caused many customers to switch their deliveries to other networks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, opportunities abound as the Black Friday holiday season approaches for UPS to turn the tide. This retail extravaganza provides ample scope for UPS to augment its revenue, attract fresh clientele, and retain its existing customer base, courtesy of its high-quality service offerings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">UPS is improving the underlying quality of its business. This is most easily seen in two areas relating to its revenue. The first is the conscious decision to be more selective over deliveries rather than chasing volume growth. Second is that UPS has made great strides in expanding its connections with small and medium-sized businesses (SMB) and healthcare customers, and it's been able to significantly grow its revenue per piece in recent years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, the company's noteworthy 4.7% dividend yield appeals to a broad swathe of income-oriented investors, and value investors also find favor given its appealing valuation metrics. The firm's below-industry non-GAAP P\/E ratio presents a lucrative buying opportunity for investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over the past year, the stock has lost roughly 20% and trails behind the 50, 100, and 200-day moving averages. However, Wall Street analysts forecast the stock to reach $168.30 <\/span><span style=\"font-weight: 400;\">in the next 12 months, indicating a potential<\/span><a href=\"https:\/\/www.tipranks.com\/stocks\/UPS\/forecast\"> <span style=\"font-weight: 400;\">upside of 17.6%<\/span><\/a><span style=\"font-weight: 400;\">. The price target ranges from a low of $100 to a high of $202.<\/span><\/p>\n<p><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NYSE_FDX\"><b>FedEx Corporation (FDX)<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The shipping and logistics company FDX, with a market cap of over $63 billion, is poised to reap significant benefits from the upcoming Black Friday sales. In anticipation of heightened online shopping activity during this period, increased demand for shipping services allows the company to expand its customer reach and deepen its market penetration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Its potential to attract consumers by offering holiday promotional discounts on its services could significantly drive its revenue growth and expand its market share. The company's decision to partner with retailers for shipping services further bolsters the potential for enhanced revenues during this season of heightened consumer spending.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additional services provided by FDX, including<\/span><a href=\"https:\/\/www.fedex.com\/en-us\/shipping\/packing.html\"> <span style=\"font-weight: 400;\">gift wrapping<\/span><\/a><span style=\"font-weight: 400;\">, package tracking and<\/span><a href=\"https:\/\/www.fedex.com\/en-us\/shipping\/declared-value.html\"> <span style=\"font-weight: 400;\">insurance<\/span><\/a><span style=\"font-weight: 400;\">, could further distinguish it in a competitive marketplace, attracting additional consumers during the holiday season.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, FDX's effective cost-reduction strategies have successfully strengthened its financial standing. Outperforming Wall Street predictions, the international courier company reported impressive fiscal first-quarter adjusted earnings of $4.55 per share.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This robust financial performance led the company's management to elevate its future financial outlook. FDX shares gained momentum after the Memphis-based firm announced adjusted earnings expectations for fiscal 2024, projecting $17 to $18.50 per share.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company also expects capital expenditure to reach $5.7 billion, with investment priorities geared towards improving efficiency through fleet and facility modernization, network optimization, and automation strategies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Driven to implement transformative initiatives enhancing efficiency and reducing expenses, FDX anticipates building upon current momentum to improve profit margins and returns throughout the fiscal year. The stage is set for another year of exceptional profitability for FDX, with shares currently trading at a reasonable valuation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over the past year, the stock has gained roughly 45% and trades above the 200-day moving average of $237.12. However, Wall Street analysts forecast the stock to reach $297.85 <\/span><span style=\"font-weight: 400;\">in the next 12 months, indicating a potential<\/span><a href=\"https:\/\/www.tipranks.com\/stocks\/FDX\/forecast\"> <span style=\"font-weight: 400;\">upside of 17.2%<\/span><\/a><span style=\"font-weight: 400;\">. The price target ranges from a low of $265 to a high of $330.<\/span><\/p>\n<p><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NASDAQ_EBAY\"><b>eBay Inc. (EBAY)<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">With over $20 billion in market cap, EBAY, an established e-commerce heavyweight, is tirelessly striving to attract its consumers' interest and spending power. The company initiated the publication of its<\/span><a href=\"https:\/\/www.marca.com\/en\/lifestyle\/us-news\/2023\/11\/06\/65496c80e2704e53a48b4613.html\"> <span style=\"font-weight: 400;\">discount coupons<\/span><\/a><span style=\"font-weight: 400;\"> on November 6.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customers seeking automotive necessities, smartwatches, and Apple products can reap the benefits of up to 75% discount by commencing their shopping endeavors with EBAY this holiday season.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company recently expanded access to its Generative AI technology, an innovative system designed to upgrade the listing experience for sellers, which is now available to mobile users in the United States, the United Kingdom, and Germany, and 50% of desktop users in these regions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, EBAY's recent sales forecast for the upcoming holiday period has somewhat dispirited investors. Expected revenues for the current quarter are anticipated to total between $2.47 billion and $2.53 billion, which, while robust,<\/span><a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/ebay-forecasts-fourth-quarter-revenue-below-estimates-2023-11-07\/\"> <span style=\"font-weight: 400;\">fall below the industry analysts' average projections<\/span><\/a><span style=\"font-weight: 400;\"> of $2.60 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Its bleak revenue predictions for the historically lucrative holiday quarter indicate continued difficulties in retaining customers amid fierce competition from larger competitors. Despite U.S. online sales being projected to increase by 4.8% during the holiday season spanning November 1 to December 31, EBAY faces an uphill battle to attract traffic. To weather these challenges, the company plans to enhance its cost efficiencies to safeguard profit margins and earnings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The unexpected forecast emanated shockwaves throughout the financial sector, particularly unsettling EBAY investors. Post-announcement, the company's shares suffered a significant plunge, underscoring the heavy expectations investors attach to EBAY due to its commanding position in the e-commerce market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over the past year, the stock has lost over 12% and trades below its 50-, 100-, and 200-day moving averages. However, Wall Street analysts forecast the stock to reach $44.75 <\/span><span style=\"font-weight: 400;\">in the next 12 months, indicating a potential<\/span><a href=\"https:\/\/www.tipranks.com\/stocks\/EBAY\/forecast\"> <span style=\"font-weight: 400;\">upside of 11.6%<\/span><\/a><span style=\"font-weight: 400;\">. The price target ranges from a low of $32 to a high of $56.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">EBAY constantly refines its strategies to uphold its preeminence in an industry characterized by relentless evolution and revolution. As the holiday season looms, its performance is under intense scrutiny as never before, making its sales forecast a widely watched indicator in the e-commerce landscape.<\/span><\/p>\n<p><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NYSE_BBY\"><b>Best Buy Co., Inc. (BBY)<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">BBY, with over $14 billion market cap, is a specialty consumer electronics retailer that introduces various promotional events via its recently inaugurated Holiday Gift Center \u2013 offering unique exploration and immersive discovery experiences of cutting-edge technologies for its clientele. BBY members can anticipate<\/span><a href=\"https:\/\/www.rttnews.com\/3396923\/best-buy-unveils-early-black-friday-deals.aspx\"> <span style=\"font-weight: 400;\">exclusive savings<\/span><\/a><span style=\"font-weight: 400;\"> throughout the holiday period. The company will depend on its My Best Buy membership benefits to boost this year's holiday sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Interestingly, BBY finds itself in a unique situation this festive season as it battles to maintain market share during a time frame it typically dominates. The retailer has tempered expectations for a highly successful holiday season, which usually accounts for a significant proportion of its profit margins.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While BBY has a low non-GAAP P\/E of 10.30x, its dividend yield of 5.74% remains low for various reasons. As of July 29, 2023, BBY has $8.43 billion in current liabilities and $8.30 billion in current assets. Of its current assets, $5.65 billion in merchandise inventories highly depends on consumer spending patterns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s vulnerability can be illustrated further by its lower than 1x current ratio. Given the upcoming debt maturity, the company\u2019s fortunes largely hang on the successful sale of inventory to maintain its dividend.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This year\u2019s holiday season provides a moment for BBY's modern retail business model \u2013 which largely thrived during the pandemic \u2013 to prove its resilience. The Richfield, Minnesota-based firm continues to concentrate on enhancing its digital capabilities, such as augmenting its omnichannel services. Its consultation service, supporting customers' personalized tech requirements, has grown in popularity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the second quarter that ended July 29, 2023, digital sales comprised 31% of our domestic revenue, consistent with the year-ago quarter and nearly twice as high as the domestic revenue percentage in the pre-pandemic second quarter of fiscal 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the BBY stock has declined over 10% over the past year and is trading beneath the 100-day and 200-day moving averages<\/span><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\"> Wall Street analysts remain optimistic. They forecast the stock to reach $78.60 <\/span><span style=\"font-weight: 400;\">in the next 12 months, indicating a potential<\/span><a href=\"https:\/\/www.tipranks.com\/stocks\/BBY\/forecast\"> <span style=\"font-weight: 400;\">upside of 18.2%<\/span><\/a><span style=\"font-weight: 400;\">. The price target ranges from a low of $60 to a high of $110.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even though it is perceived as a risky stock with slim margins and limited appeal to investors, BBY is determined to convince potential investors that its forward-looking strategies, industry reshaping efforts, and focus on advancing in-store experiences and robust pickup\/delivery operations mark it as a worthwhile investment prospect. Hence, it could be best added to the watchlist.<\/span><\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Black Friday, a renowned shopping holiday, is rapidly gaining popularity worldwide. The fervor surfaces like clockwork every year. The event signals the onset of the festive retail period, where vendors entice consumers with considerable discounts and appealing deals on merchandise. Consumers\u2019 scramble for long-desired products is typically the culmination of months of intense preparation undertaken [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":59014,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[32975,32977,32964,32973,32968,32156,32963,32967,32214,32971,32976,32965,32213,32970,32974,32212,32966,32969,32972,32962],"class_list":["post-59088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-69-of-black-friday-shopping-occurred-online","tag-74-of-consumers","tag-best-buy-co","tag-corporation-fdx","tag-discount-coupons","tag-ebay-inc-ebay","tag-exclusive-savings","tag-fall-below-the-industry-analysts-average-projections","tag-fedex-corporation-fdx","tag-gift-wrapping","tag-holiday-spending","tag-inc-bby","tag-inc-ups","tag-insurance","tag-record-breaking-9-2-billion","tag-united-parcel-service","tag-upside-of-11-6","tag-upside-of-17-2","tag-upside-of-17-6","tag-upside-of-18-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>4 Stocks to Buy Before Black Friday 2023 - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"description\" content=\"Many individuals eagerly anticipate substantial savings on purchases as Black Friday is fast approaching. In this context, we focus on potential investment options that could reap benefits. Ahead of Black Friday, United Parcel Service (UPS), FedEx (FDX), eBay (EBAY), and Best Buy Co., Inc. (BBY) could be solid portfolio additions. Read on\u2026\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 Stocks to Buy Before Black Friday 2023 - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"Many individuals eagerly anticipate substantial savings on purchases as Black Friday is fast approaching. In this context, we focus on potential investment options that could reap benefits. Ahead of Black Friday, United Parcel Service (UPS), FedEx (FDX), eBay (EBAY), and Best Buy Co., Inc. (BBY) could be solid portfolio additions. Read on\u2026\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/\" \/>\n<meta property=\"og:site_name\" content=\"INO.com Trader&#039;s Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/inocom\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-15T11:00:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-24T14:31:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2023\/10\/STOCKPICK.png\" \/>\n\t<meta property=\"og:image:width\" content=\"597\" \/>\n\t<meta property=\"og:image:height\" content=\"430\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"The INO.com Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The INO.com Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/\"},\"author\":{\"name\":\"The INO.com Team\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280\"},\"headline\":\"4 Stocks to Buy Before Black Friday 2023\",\"datePublished\":\"2023-11-15T11:00:56+00:00\",\"dateModified\":\"2023-11-24T14:31:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/\"},\"wordCount\":1650,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2023\/11\/4-stocks-to-buy-before-black-friday-2023\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/wwwtest.ino.com\/blog\/wp-content\/uploads\/2023\/10\/STOCKPICK.png\",\"keywords\":[\"69% of Black Friday shopping occurred online\",\"74% of consumers\",\"Best Buy Co.\",\"Corporation (FDX)\",\"discount coupons\",\"eBay Inc. 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