Which Retailers will Profit the Most This Holiday Shopping Season?

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Nov 21, 2014
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If your investing technique is anything like Peter Lynch, you may be out at Walmart or Target picking up gifts for the kids on Black Friday and notice how many other people are flocking to the same retailers.

After hiding the gifts purchased at home, you may consider buying stocks from the stores you hit. The holiday season, after all, is usually when most retail stores generate the most income.

As Black Friday approaches, marking the official season of holiday shopping, retailers are beginning to post lists of hot items of the year for consumers to think about gift ideas.

Here is a condensed version of the list of popular toys of 2014, along with retailers and their stock information. The full list can be found on the Toy Insider website.

  1. 03May20171250001493833800.jpgDisney Frozen Snow Glow Elsa .
  2. 03May20171250001493833800.jpg Twista Balance Bike
  3. 03May20171250001493833800.jpgAirstorm Firetek Bow
  4. 03May20171250001493833800.jpgIt's my Biz

Retailers carrying these toys with stocks available in the market include Walmart (WMT, Financial) and Target Corp (TGT, Financial).

Walmart (WMT, Financial) is currently priced at $84.95 and is up by 0.44%. The company has doubled the number of deals available this year for Cyber Monday and is also offering half off on many of its items.

03May20171250011493833801.png

This chart shows price in relation to revenue.

Target Corp (TGT, Financial) is currently priced at $71.26 and is up by 0.1%. Last year, the company suffered tremendously during Black Friday due to a data breach. The breach left the CEO and CIO without jobs and also cost Target $158 million. According to the Identity Theft Resource Center's (ITRC) latest report, there has been a total of 679 data breaches through November 18, with over 81 million records exposed, so the likelihood of another devistating data breach is not unlikely.

03May20171250011493833801.png

This chart shows revenue in relation to net income

Keep your eyes peeled as you fight the crowds this Black Friday and take note of which stores appear to be doing better than others. As Peter Lynch has stressed in his book, One Up on Wall Street, you don't need Wall Street to tell you which companies to invest in, you just have to be observant of what's around you and take note.