November 28, 2024 | Read Online | | Value Investor Daily #69 Black Friday Retailer Opportunities & Happy Thanksgiving! |
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| Savvy Investors Know Where to Get Their News—Do You? | | Here's the truth: there is no magic formula when it comes to building wealth. | Much of the mainstream financial media is designed to drive traffic, not good decision-making. Whether it's disingenuous headlines or relentless scare tactics used to generate clicks, modern business news was not built to serve individual investors. | Luckily, we have The Daily Upside. Created by Wall Street insiders and bankers, this fresh, insightful newsletter delivers valuable insights that go beyond the headlines. | And the best part? It's completely free. Join 1M+ readers and subscribe today. | | Happy Thanksgiving! This year, we're grateful for YOU reading our humble publication—thank you! | Here are some retailer stock ideas for after today's Thanksgiving feast. Enjoy! | Consumers are projected to spend the most ever this holiday shopping season, almost a trillion dollars. | Retail sales from Black Friday through Cyber Monday are projected to reach $75 billion, a 5% increase from last year. | From big-box retailers to smaller platforms like Etsy, companies are positioning themselves to capitalize on this monumental weekend. | Thanksgiving has long been synonymous with family gatherings and a traditional meal. However, economic pressures such as inflation and stagnant wage growth have forced consumers to reassess their spending priorities. | While the cost of a typical Thanksgiving dinner for ten has decreased slightly to $58.08 this year, it remains 19% higher than pre-pandemic levels in 2019. | At the same time, Black Friday has emerged as a cornerstone of the holiday shopping season, with consumers eager to take advantage of significant discounts to offset rising prices. | This year, Black Friday online sales alone are expected to hit $10.8 billion, up 9.9% from 2023. | Major retailers like Amazon, Walmart, Costco, and Target are poised to benefit from the spending boom. | But let's look at some of the smaller retailers. | 1. Macy's (Ticker: M, P/CF Ratio: 3.76) | Macy's continues to face challenges as it transitions toward a more digital-first strategy. Despite these hurdles, its low price-to-cash-flow ratio of 3.76x suggests the stock may be undervalued. But you've got time on this one. Earnings are not expected to rebound until 2028, and a lot can happen between now and then. | 2. Kohl's (Ticker: KSS, P/CF Ratio: 2.01) | Kohl's is undergoing a brand overhaul and leveraging partnerships to attract new customers. Its low forward P/E ratio of 10.6x reflects market skepticism, but successful execution of its turnaround strategy could lead to substantial gains. But again, analysts don't see significant earnings growth until 2028. | 3. The Gap (Ticker: GPS, P/CF Ratio: 5.79) | The Gap is restructuring its business to improve profitability. With a P/E ratio of 11x, the company offers a potentially compelling opportunity for value investors, assuming its strategic initiatives yield positive results. Analysts project $3.14 of earnings per share by 2030, up from $1.43 in 2024. | 4. Best Buy (Ticker: BBY, P/CF Ratio: 10.91) | Best Buy has adapted well to changing consumer behaviors, focusing on its online sales performance. Its P/E ratio of 15 suggests it may still have some upside. The company has aggressively returned cash to shareholders, buying back 38% of shares since 2015. The company announced earnings last week, slightly missing the top and bottom lines and leaving guidance nearly unchanged for 2025. The company yields a 4.2% dividend. It plans to buy back $500 million of stock next year, or 2.6% of the current market cap. That implies a total forward shareholder yield of around 6.8%. Earnings are expected to accelerate again in 2027-2028. | The projected $75 billion in Black Friday weekend sales underscores the resilience of U.S. consumer spending, even in the face of economic headwinds. The U.S. economy grew at an annualized rate of 2.8% in Q3 2024, driven by robust consumer activity. However, rising credit card usage to finance holiday purchases has raised concerns among economists. | Shoppers plan on spending $1,778 this holiday season, up 8% from last year. However, a NerdWallet survey found that 28% of holiday shoppers are still paying off last year's gifts. | Never bet against the American consumer. Even when in debt, we are optimistic and eager to shop! | | | Meta, Rabbit and Bee AI have Black Friday deals, but there's no must-have AI gadget yet |  | | | | November 27, 2024 | Meta, Rabbit and Bee AI are offering Black Friday deals for their devices that incorporate AI, but there aren't many other generative AI gadgets on the market. | | Read More |
| Bitcoin bounces back above $96,000 as investors eye $100,000 milestone heading into Thanksgiving holiday |  | | | | November 27, 2024 | Bitcoin climbed back over $96,000 on Wednesday following a pullback this week from its recent record. | | Read More |
| 10-year Treasury yield slides as key inflation report comes in as expected |  | | | | November 27, 2024 | Treasury yields declined on Wednesday and prices rose as a key inflation reading met market expectations. | | Read More |
| Apple, Trump and a booming budget surplus: Ireland has much to mull over as voters head to the polls |  | | | | November 28, 2024 | A budget surplus and concerns over U.S. President-elect Donald Trump's upcoming tax policies are some of the economic questions facing Ireland. | | Read More |
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| Thank you for reading today! | Happy Investing,
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