Gobbling Up Success: Exploring Stocks with a Post-Thanksgiving Prosperity Track Record in the Turkey Trade

image
Investing / Saturday, 25 November 2023 12:25

Navigating the Thanksgiving Trading Terrain: Stocks Set to Soar in the Post-Holiday Surge

As Thanksgiving ushers in a period of choppy and low-volume market conditions, savvy investors turn their attention to stocks that have historically thrived in the aftermath of the holiday. Despite the subdued market atmosphere from Wednesday to Friday, where the Dow Jones Industrial Average has seen gains in 18 out of the last 34 instances, a promising trend emerges in the subsequent weeks leading into December.

According to data from Stock Trader’s Almanac, this post-Thanksgiving surge is a recurrent phenomenon. While the market takes a breather with a full closure on Thursday and an early closure on Friday, it tends to regain momentum afterward. CNBC Pro's screening criteria focused on stocks that, over the past decade, have shown an average gain of 1% or more in the two weeks following Thanksgiving.

Leading the pack is Caesars Entertainment, boasting a robust track record of nearly 5% gains in the post-Thanksgiving period over the last decade. The stock, up around 10% in 2023, received a further boost as more than 66% of analysts polled by FactSet maintain a buy rating. A tentative agreement with the Culinary Union in November averted a potential strike involving 10,000 employees, contributing to the positive momentum.

CVS, the pharmacy giant, also stands out on the list, demonstrating an average gain of 2.3% in the two weeks after Thanksgiving. Analysts, with over 69% favoring a buy rating, remain optimistic, attributing the performance to increased demand during the cold and flu season. Despite a challenging year, marked by a 27% slip, CVS showcased resilience by surpassing Wall Street's third-quarter estimates, driven by robust revenue gains in its health services segment.

Among the aviation sector, Delta Airlines emerges with the most bullish outlook from analysts, as approximately 83% maintain a buy rating. Historically, Delta has seen a 2.6% increase after Thanksgiving, aligning with heightened holiday travel. In 2023, the stock has climbed by 9%, a testament to the company's strategic cost-cutting measures, including a reduction in its corporate workforce, following a remarkable 60% rise in profit in the third quarter.

As the Thanksgiving leftovers are cleared away, these stocks present enticing opportunities for investors seeking to capitalize on the post-holiday market resurgence, backed by historical performance and favorable analyst sentiments.

Harvesting Opportunities in Post-Thanksgiving Stocks

In the wake of Thanksgiving's subdued market environment, the spotlight shines on stocks that historically flourish in the post-holiday surge. The data-backed analysis reveals promising candidates poised to navigate the end-of-year landscape successfully. Caesars Entertainment leads the charge with a solid track record, complemented by positive analyst ratings. CVS, resilient amid challenges, demonstrates potential amid heightened demand, while Delta Airlines stands as a bullish beacon in the aviation sector.

As investors digest the Thanksgiving feast, these stocks present a compelling narrative of resilience, strategic maneuvering, and historical performance. The post-Thanksgiving period unveils a unique opportunity for those looking to capitalize on the market's resurgence, providing a roadmap for navigating the upcoming weeks with confidence and strategic insight. As the year draws to a close, these stocks invite investors to partake in the bountiful opportunities the market has to offer, setting the stage for a potentially fruitful year-end rally.