Never be on the wrong side of the markets again...

Black Friday, Cyber Monday and How These Companies Fared

Well, folks, we’ve made it through the busiest shopping days of the year (Black Friday and Cyber Monday) once again. I’m sure you saw countless ads, promotions and emails about the great deals companies were offering, and if you’re like me, you’re probably wondering if it paid off in the long run.

Before the Thanksgiving holiday, economists were expecting a moderate Black Friday turnout and an overall decrease in Cyber Monday traffic. But the American consumers surprised them. Black Friday sales were down compared to last year, but Cyber Monday 2015 was reported as the largest online sales day in history. In fact, Monday’s online sales totaled more than $3 billion, a 16% increase over Cyber Monday last year.

So let’s take a look at some big-name stocks that have been in the news lately and how they fared over the holiday weekend.

Amazon.com, Inc. (AMZN)

Though Amazon didn’t release specific sales figures after the holiday weekend, the company did report high customer traffic. Two big winners were Amazon’s own Fire tablet and Fire TV stick—in fact, Fire TV sales were up six times over last year’s Thanksgiving holiday shopping weekend. It’s also important to note that Amazon shares bounced about 2% higher on Tuesday, given the positive holiday sales reports. And now the stock is trading near its 52-week high. In a market where online sales are key, Amazon is a notable winner.

Target Corp. (TGT)

The big news with Target was that its website was overloaded on Monday, and customers saw widespread outages. However, these outages happened because of heavy consumer traffic—which means that Target’s advertising worked. In fact, Thanksgiving Day 2015 was Target’s biggest online day ever, and Cyber Monday easily exceeded it. So technical difficulties aside, Target did well over the holiday weekend, and the company appears well-positioned as it closes the year.

Wal-Mart Stores, Inc. (WMT)

This year, Wal-Mart had good news and bad news. The good news was that this was the first year it focused on promoting cyber traffic—and as we now know, online shoppers were the market to entice. Wal-Mart offered sales that were available online before they were offered in stores, and it also joined the trend of Cyber Week deals that ran from Sunday night through Friday. The bad news is that Wal-Mart, too, had some website outages and, as a result, angry customers. Overall, though, Walmart came out of the weekend ahead, as Cyber Monday was also its biggest online shopping day ever.

Best Buy Co., Inc. (BBY)

Best Buy is one of the few companies that saw heavy store traffic—especially on Thanksgiving Day. The electronics retailer attracted a notable crowd to their stores on both Thursday and Friday, and then offered Cyber Week deals November 29-December 5. Though they’ve largely flown under the radar in sales headlines, Best Buy earned the number-four spot on the list of stores where customers spent the most money (behind Amazon, Target and Costco) over the holiday weekend.

Overall, all of these major retailers benefited from holiday weekend traffic—whether online or in the actual stores. So one would think that there’s a positive outlook for retailers—especially those companies with online customers. But does the Turner Analytics database agree?

Well, for the most part, retailers are not getting strong marks from the Turner Analytics database. AMZN is the one exception, as it has a total score of 102 (60 technical, 42 fundamental) and receives a buy rating. The stock is expected to move about 11% higher in the near term.

However, WMT, TGT, and BBY all receive sell ratings, mainly because all three stocks have fallen through their trend lines recently. WMT has a total score of 97 (65 technical, 32 fundamental), TGT has a total score of 111 (72 technical, 39 fundamental) and BBY has a total score of 132 (96 technical, 36 fundamental).

So if you’re looking to invest in a retailer this holiday season, you may want to consider AMZN and avoid WMT, TGT and BBY.

To stay on top of my latest stock rankings, consider subscribing to my Turner Analytics database. And if you aren’t already fully invested and would like handpicked stocks, consider subscribing to Signal Investor.

Sincerely,

Signature

Mike Turner
Turner Trends

Log In

Forgot Password

Search