5 stocks poised for a Cyber Monday bonanza

Online shoppers could spend some $1.8 billion Monday, and these companies will haul in the profits.

By Traders Reserve Nov 29, 2013 11:24AM

Image: Credit card Computer (© Stockbyte/SuperStock)By Karen Riccio

 

Move over, Black Friday. Cyber Monday's coming to town.

 

With more consumers shopping online than ever before, cyber shoppers could deliver a revenue bonanza for key companies this Cyber Monday. For many, Black Friday's lines, crowds and confusion in the wee hours is losing its luster.

 

In fact, more people are expected to reach for their computer keyboards (or phones) on Cyber Monday than for their car keys on Friday, American Express projects.

 

Online shoppers are forecasted to spend $1.8 billion on Monday  -- $62 billion throughout the holiday season -- and that means the online retail community at large will be sitting pretty with 22 shopping days still left until Christmas. I suspect with storms in the Northeast making in-person shopping less than pleasant, that figure could be bigger than anticipated.

 

For a handful of companies, the 15% increase in projected online spending on Cyber Monday -- though below last year’s 21% jump -- should deliver a virtual bow-tied bonanza of revenue. . . and deliver a boost in profits for investors. Here are five stocks to watch as Cyber Monday sales roar to new highs:
 

Overstock.com (OSTK)

The obvious choices here would have been Amazon (AMZN) and eBay (EBAY), but for sheer quality customer service and ease of purchase, Overstock.com stands above the rest. In fact, it just won an award for having one of the best mobile websites and apps. Mobile is fast becoming a viable alternative for shoppers on the go. Overstock.com has an app for iOS devices (iPhones, iPods and iPads) as well as its Android version.

 

You name it, and the Salt Lake City, Utah, online discount retailer sells it -- from furniture, rugs, bedding, electronics, clothing, jewelry and cars to books (often 10% lower than Amazon's prices).


Despite its biggest revenue-producing days still ahead, Overstock's stock is up 85% year-to-date. That’s a gift in and of itself. 


FedEx (FDX)

The global shipper expects Cyber Monday to be the busiest day in its history. Considering that history goes back 43 years, it certainly would be cause for celebration at FedEx headquarters in Memphis, Tenn. Seems like a win-win for all.

 

In anticipation of moving some 22 million shipments alone on Cyber Monday and a record-breaking 85 million packages for that entire week, FedEx is hiring tens of thousands of seasonal workers to handle the uptick.

 

It doesn’t take a math whiz to deduce that FedEx should grow right in step with e-commerce. What will the bulk of its holiday shipments include? Electronics, apparel and luxury goods. Here’s another stock that chugging right along in 2013, up 46% since January.

 

Wal-Mart Stores (WMT)

You can’t argue with success. Cyber Monday 2012 was Wal-Mart’s biggest sale day of the year, and Walmart.com CEO Joel Anderson has spent the better part of this year making sure this year will be even bigger.


I’m a believer, considering that even outside of holidays, $36 million is spent at Wal-Mart every hour of every day (its words, not mine).

 

One of the biggest selling points to shopping Wal-Mart online is free shipping on all purchases over $35. Of course you can find some of the best deals, from a Samsung 46-inch LED TV for $479 to an Xbox One for $559 and Apple iPod Touch for $199. Perhaps even bigger is its role as a distributor for Disney products and the infamous and very popular Doc McStuffins’ toys. Wal-Mart may not be able to go toe-to-toe with Amazon, but it still goes hand-in-hand with online holiday shopping. Shares of Wal-Mart have grown at a steady 16% in 2013.

 
Walt Disney (DIS)

In one corner of Cyber Monday we have Viacom’s (VIAB) Dora the Explorer doll, in the other is Disney’s Doc McStuffins, a 6-year-old aspiring physician. Disney's McStuffins is flying off the shelves --  and getting the clicks online -- as one of the hottest toys this season. The doll retails for about $10, and Disney is maximizing sales with spinoff items such as the $35 McStuffins doctor kit.


Along with the toy segment of Disney’s business, it can count on holiday sales from the non-shoppers opting for a visit to one of its amusement parks. Disney fans will also head to the new 3-D animated movie musical Frozen, which released the day before Thanksgiving. It's expected to generate $38 million in movie-ticket sales over the long Thanksgiving weekend.


Disney stock continues to entertain investors, up nearly 40% year-to-date.


Apple (AAPL)

You simply can’t discount Apple as one of the biggest players during the holidays and specifically on Cyber Monday.  Apple's new iPad mini, a 7.9-inch tablet with Retina display and the new iPhone 5s and 5c are destined to be under many Christmas trees or stuffed in stockings.

 

Apple's iPhone is its largest moneymaker, at more than half of sales, and Apple projected that it will sell as many as 55 million iPhones in the fourth quarter. One analyst suggested that the iPad Air and new mini could "possibly be the most well-received recent devices from Apple" based on the 1 million tweets about them since they were unveiled back in October.


Last year the iPad accounted for more than 7% of traffic to e-retail sites, followed by the iPhone at 6.9%. The iPad accounted for 90.5% of traffic from tablets, beating out Android devices, Amazon Kindle, Samsung Galaxy and Barnes and Noble Nook.

 

You can expect Apple to retain leadership over the holidays and get a boost in stock value -- if the past decade means anything. AAPL has gone up an average of 5.8% during Thanksgiving week in the last 10 years.


More from Traders Reserve

 

27Comments
Nov 29, 2013 9:05PM
avatar
Please don't listen to this article and buy anything based on one day of sales (especially a day when margins are about 1.5%)... Stocks are priced for future earnings and earnings potential, so they have already forecast cyber Monday number into their earning.  


Nov 29, 2013 1:45PM
avatar
MSN business articles are written for speculators - NOT investors.  Get in on Monday when the market is down and then dump on Friday when QE 1 through 1,000 dumps counterfeit money into the market to sucker in the European markets before the Monday "adjustments."  As such, you have to expect the fad stock 'du jour' to appear in their articles.  It is interesting to read the articles and the commenters, however.  I track the commenters who actually get it. 
Nov 29, 2013 5:22PM
avatar
Market manipulators deserve to get burned Monday ,,,
Nov 29, 2013 6:13PM
avatar

An obvious sign of an extremely frothy equities market... stocks to invest in based upon one day's revenue.

The bubble's pop is near.

And the most optimistic cheerleaders of the bunch will lose the most as they will fail to believe the correction whilst cuffed to their determination.  Just like 7 years ago.

History is a terrible thing to ignore.

Nov 30, 2013 12:01AM
avatar
 And 5 years of welfare for wall street and Obozo flapping gums for you the drooling stupid democrat.
Nov 29, 2013 1:41PM
avatar
My oh My, nothing like the Holiday Spirit....
Dec 2, 2013 11:56AM
avatar
The previous responses to this article were by the very worst of the forum morons.

What's the problem with these clowns? Well for one, they have been out of the market for the last five years having sold out their positions at the bottom of the bear market. Next they are basically very unhappy people who have never enjoyed one moment in their drab miserable existence. Ebenezer Scrooge  was a princely fellow compared to these jerks!

The happy and blessed of this world, rich God Fearin' Republicans, are out spending money buying gifts for ourselves and our friends. We are enjoying the season attending lavish parties where the vintage wines flows and great chefs prepare magnificent feasts!

Yuk yuk!
Nov 29, 2013 1:02PM
avatar
Charity for Billionaires... EVERY fiat dollar printed for Quantitative Easing lifts ONLY the top earners in America while affording the 95% remaining with debt impossible to repay. WHAT do billionaires use that fake money on? They make BIG box retailers able to import CRAP from nations that do us nothing good, take our jobs, steal our money, starve free enterprise... and make PROFIT off it. The DUMB part is-- lowlife PEOPLE who text peck, skip out on taxes and thrive on deep discounters--- make themselves victims by doing so.
DID YOUR KID really need a new toy to break, mental distraction, brain-sucking tool? Wake up you IDIOTS... every penny the Dow is UP today indicates anti-Americanism. What goes around comes around and undoubtedly, as a Tsunami. You can't swim if you live dim and selfish. Get thinking... it's been a while, fools.

Dec 2, 2013 10:16AM
avatar

Spend spend spend. Money money money. Profit profit profit. Consume consume consume.

Since all this must deeply offend God, let's just go ahead and remove all reference to that pesky Christ fellow from 'Christmas' thing since the entire clusterf**ck has absolutely nothing to do with His birth anyway; wasn't even BORN on or anywhere around Dec. 25th. Ergo, let's call this time of year what it is, Moneymas, or 'Consumermas', and start a new holiday around...oh...say late Sept. when Christ was likely actually born anyway; call that date Christmas.

Nov 29, 2013 3:08PM
avatar
Obama is inflating stocks of its financial supporters,he uses middlemen that get loans with no collateral from bailed out banks.So higher nasdaq means higher loans from banks with no collateral.Is it good for the economy?does it create jobs?no its only good for Obama's financial supporters because they are getting together with Obama richer than god.after 5 years of printing money in record amounts a vast amount of young americans are still with no jobs and Obama only cares to pump up the stocks of his supporters.also the purchasing power of dollar is eroding every month Houses and rent up 25% since Obama came to power,,food up 50% fish almost 100% up and oil up from $36 to $93 todaY and cause of recession in Europe and japan since they don't produce oil..Does Obama cares for purchasing power of workers? no, only to inflate stocks of his financial supporters.Jobs in USa have been created by offshore oil exploration and new fracking technology for natural gas and oil and not by fed or Obama
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125
125 rated 1
267
267 rated 2
455
455 rated 3
612
612 rated 4
682
682 rated 5
695
695 rated 6
632
632 rated 7
472
472 rated 8
279
279 rated 9
147
147 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
VZVERIZON COMMUNICATIONS9
TAT&T Inc9
CTLCENTURYLINK Inc8
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.