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Festive winners: The 12 stocks tipped for Christmas success

Your Money
Written By:
Your Money
Posted:
Updated:
12/12/2013

Graham Spooner, investment research analyst at The Share Centre, picks 12 stocks he thinks could benefit from the festive period.

Booker Group

As restaurants see an increase in footfall, the cash and carry operator, Booker Group, could see an increase in demand and benefit from this. The management has turned the group’s fortunes around and the company continues to win new contracts and expand its consumer base. Christmas should bring the group more good news.

Hornby

Hornby has suffered falling sales in recent years; however Christmas is a vital season for the model railway and Scalextric maker and provides a major boost to revenues. The company hopes parents will be looking for Christmas gifts that pull their children away from computer screens. Collectors are also important customers to the toy maker.

Sainsbury’s

The supermarkets will be battling for our attention over the Christmas period and Sainsbury’s will no doubt be a strong contender to benefit from the festive season. Sainsbury’s continues to get it right at the checkout, as it increases its market share to 16.8%, the highest for a decade and delivers 35 consecutive quarters of like for like sales growth.

Thornton’s

Chocolates are a staple stocking filler for many and well-known brand Thornton’s is a favourite. As the company expand into the world of corporate gifting and develop an online strategy, it becomes easier for the internet shoppers to purchase their chocolates, as well as more economical for the company as it decreases store count.

Majestic Wine

For many, Christmas is a time to celebrate and this could see Majestic Wine benefit. The company recently reported a 39% increase in sales of Prosecco, a trend that could possibly continue into the festive period, as customers treat themselves to a bottle of fizz. Its commercial operations, which includes sales to pubs and restaurants, now accounts for 21.7% of UK sales, are also currently doing well and could see a timely uplift.

ASOS

Demand for party outfits, Christmas jumpers and Christmas presents are bound to increase during December and as the leader in the sector, online retailer ASOS is streets ahead for online shopping. The company is continuing to expand globally and as it invests in faster delivery and improved services, more shoppers may be attracted to its shop window.

Young & Co

Young & Co is a London based hotel and pub operator that has so far shown itself to be recession proof and managed to differentiate itself from other failing pub businesses. The company are doing well and could see a boost from the Christmas festivities, as Londoners hit the local pubs and others travel to the capital to celebrate.

Also, the shareholder perk is attractive as it offers reduced rates on hotel rooms for holding one share.

Halfords

Sporting events of the last couple of years have seen many turning to cycling as we become a biking nation due to Olympic fever. Early 2013 saw the company issue a profit warning, however a warmer summer and the company’s turnaround strategy has benefited the company greatly during the second half of the year. Christmas is the ideal time for purchasing kit for new enthusiasts, not to mention bikes for the little ones, and Halfords could see this benefit them.

International Greetings

Demand for Christmas gift wrapping and greetings cards may provide a boost for International Greetings. The company has been improving operational efficiencies during the year and is on the recovery path. Whilst the company will have already reported volumes from most Christmas orders, higher demand during the festive season could see sales increase further.

Prezzo

Christmas usually means an increase in social gatherings and Prezzo may benefit from people eating out more and catching up with friends and family. The management are well regarded and it has restaurants in the more upmarket areas, which could help. Prezzo is also well known for its discount vouchers – making it more affordable during an expensive time of year for the consumer.”

Marks & Spencer

Marks & Spencer, the golden oldie of the high street, almost always sees an increase in its food sales over the Christmas season. In recent years however, its general merchandise and women’s wear has pulled it down. This year, the retailer is tackling these problems and starting to attract shoppers back through its doors with its winter collections. Management is strong and are delivering on Food, International and online operations.

EasyJet

Whether it’s travelling to spend time with loved ones, or flying away from the Christmas chaos, low cost airline EasyJet could see business soar over the festive period. It is also the time of year people start to think about booking their getaways for 2014. The company recently reported a 51% rise in yearly pre-tax profits to £478m as it introduces allocated seats.