My 3 Favorite Black Friday Profiteers to Buy

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Nov 23, 2012
Today is Black Friday. For financial markets, today is also a very meaningful event. It is the first day of the pre-Christmas shopping season, which indicates the strength of the full period. People searching for the best offers, the most attractive deals and spend as much money as their credit card allows. Some companies will benefit from Black Friday and the pre-Christmas shopping season. Investors should be careful by buying Black Friday stocks.

I made a screen of well-known stocks which have an exposure to the current event. They are well diversified and should not have a higher downside risk if the sales numbers are weaker than expected. If you like the theme shopping and consumer goods and you like to buy stocks from several industries covering these ideas then you should take a look at the list of the 20 Black Friday stocks.

The Black Friday shopping stock list consists of twenty stocks with consumer focus (apparel, jewelry, retail electronics and food). Most of them pay dividends and the average stocks is expected to grow in earnings by a double-digit amount. Below the results is one high-yield and sixteen have a current buy or better rating by brokerage firms.

Here are my favorite stocks:

Wal-Mart Stores (WMT) has a market capitalization of $231.57 billion. The company employs 2,200,000 people, generates revenue of $446.95 billion and has a net income of $16.454 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34.688 billion. The EBITDA margin is 7.76 percent (the operating margin is 5.94 percent and the net profit margin is 3.68 percent).

Financial Analysis: The total debt represents 27.62 percent of the company’s assets and the total debt in relation to the equity amounts to 74.92 percent. Due to the financial situation, a return on equity of 22.55 percent was realized. Twelve trailing months earnings per share reached a value of $4.86. Last fiscal year, the company paid $1.46 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: the P/E ratio is 14.18, the P/S ratio is 0.52 and the P/B ratio is 3.3. The dividend yield amounts to 2.31 percent and the beta ratio has a value of 0.33.

V.F. Corporation (VFC) has a market capitalization of $17.28 billion. The company employs 58,000 people, generates revenue of $9.459 billion and has a net income of $890.39 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.413 billion. The EBITDA margin is 14.95 percent (the operating margin is 13.16 percent and the net profit margin is 9.41 percent).

Financial Analysis: The total debt represents 22.72 percent of the company’s assets and the total debt in relation to the equity amounts to 46.76 percent. Due to the financial situation, a return on equity of 21.18 percent was realized. Twelve trailing months earnings per share reached a value of $9.01. Last fiscal year, the company paid $2.61 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: the P/E ratio is 17.41, the P/S ratio is 1.83 and the P/B ratio is 3.83. The dividend yield amounts to 2.22 percent and the beta ratio has a value of 0.89.

Tiffany (TIF) has a market capitalization of $7.75 billion. The company employs 9,800 people, generates revenue of $3.642 billion and has a net income of $439.19 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $858.55 million. The EBITDA margin is 23.57 percent (the operating margin is 19.45 percent and the net profit margin is 12.06 percent).

Financial Analysis: The total debt represents 17.12 percent of the company’s assets and the total debt in relation to the equity amounts to 30.32 percent. Due to the financial situation, a return on equity of 19.41 percent was realized. Twelve trailing months earnings per share reached a value of $3.44. Last fiscal year, the company paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: the P/E ratio is 17.79, the P/S ratio is 2.13 and the P/B ratio is finally 3.30. The dividend yield amounts to 2.09 percent and the beta ratio has a value of 1.78.

Take a closer look at the full table of the best trading ideas for Black Friday 2012. The average P/E ratio amounts to 20.53 and forward P/E ratio is 15.73. The dividend yield has a value of 1.55 percent. Price to book ratio is 10.24 and price to sales ratio 2.08. The operating margin amounts to 13.80 percent. The average stock has a debt to equity ratio of 0.57.