7 Black Friday Stocks To Watch

For years, Black Friday has been one of the largest shopping days of the year. Over time, the holiday has become less significant with the introduction of Cyber Monday and retailers adding multiple days of sales to the holiday shopping season.

Here is a look at some potential winners from the 2021 Black Friday shopping season.

Black Friday Sales: In 2020, Black Friday weekend sales hit $14.1 billion, up from the $11.9 billion in 2019. This total beat estimates from Blackfriday.com. The website predicted that 2021 Black Friday spending will be up.

“Those who have been waiting to upgrade their electronics and wardrobe will likely use Black Friday as an excuse,” the site said.

The website predicted online Black Friday and Thanksgiving Day sales will hit $17 billion in 2021.

Early data from Sensormatic Solutions showed that foot traffic in U.S. retailers was down 28.3% compared to 2019 levels. Black Friday foot traffic was up 47.5% from 2020 numbers in the early report.

Thanksgiving Day traffic was down 90.4% from 2019 levels, with more retailers opting to stay closed on the holiday in 2021.

Apple Inc: One of the hottest Black Friday sale items was AirPods from Apple Inc AAPL. Walmart Inc WMT had a low price of $169 for AirPods Pro, which sold out in minutes. Other retailers offered heavy discounts on AirPods. 

Target: While some retailers saw lower foot traffic during Black Friday, one that saw strong demand was Target Corp TGT. The retailer saw strong demand for products and got a head start on many retail peers with its Black Friday holiday sales starting back in late October.

Target also offered a weeklong Black Friday event and has price match guarantees on items through Dec. 24, moves that might have increased traffic. Target has beat analyst revenue estimates in seven straight quarters and could continue the streak with a strong Black Friday week and holiday.

IRobot: Known for its robot vacuum, the Roomba, iRobot Corp IRBT has seen its shares trade flat in 2021. After several run-ups of shares over the $100 level, IRBT shares are trading at $78.84, near 52-week lows of $74.01. Heavy promotions of iRobot products from some major retailers could help boost the current quarter for the company. Several versions of the Roomba saw heavy discounting on Amazon over the holiday shopping period, including the lowest price ever offered on several models.

Related Link: Big Drop In Black Friday Retail's Store Traffic Compared To 2019 

Yeti: Outdoor and recreation product company Yeti Holdings YETI was highlighted as a potential Black Friday winner by Bank of America on Monday.

Yeti recently reported third-quarter revenue up 23% year-over-year. The result came from a comparable period of 29% growth and led to the company increasing its full-year guidance. The company sees full-year revenue growth of 28% to 29%, up from a prior range of 26% to 28%.

Google searches for Yeti are nearing levels seen during the shopping season last year. The company has a history of beating analyst estimates for revenue, and with the company’s biggest quarter showing strong demand for products, another beat could be on its way.

Affirm: Buy now, pay later company Affirm Holdings AFRM could be in for a strong holiday shopping season if reports from RetailDive hold up.

With buy now, pay later a new update to the old holiday favorite of layaway, Affirm Holdings is one of several that could benefit. Buy now, pay later spending is up 422% in November and order volume is up 438%, according to Adobe. During the week of Thanksgiving, 8% of orders placed online included payment with buy now, pay later, up 31% year-over-year.

Amazon.com Inc: Even with Black Friday being a traditional physical retail shopping holiday, Amazon.com Inc AMZN could come out a winner. The data shows that fewer people may have ventured out to make purchases in store and may be choosing to once again do a majority of holiday shopping online, which benefits a company like Amazon.

Shopify: E-commerce platform provider Shopify SHOP could be another winner from the Black Friday shopping season. The company reported record-setting Black Friday sales of $2.9 billion for its retailers. This marked a 21% increase from the previous year, which was up 75% from 2019. Peak sales hit over $3 million per minute on Shopify websites on Black Friday. The company also reported it crossed the $1-billion sales mark four hours earlier than Black Friday in 2020.

“Every year, Black Friday represents one of the largest single-day sales moments for entrepreneurs around the world and this year it was bigger than ever,” Shopify President Harley Finkelstein said.