Black Friday Sales Will Predict 4Q Results
What You Should Consider Days Before Black Friday


Dear Trader:

Black Friday is only two days away, and the whole world is in the eager anticipation of lucrative discounts across the retail and other sectors.

Whether you are planning to splash on various Black Friday deals or not, as a trader, you should closely watch the shares of companies offering discounts to the public. As their sales jump, the price of their stocks might change and, in doing so, create valuable trading opportunities. Black Friday happens only once a year, and it would be a shame to miss a chance to capitalize on the shopping craze overtaking the world.

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To understand how much Black Friday can influence companies’ shares, just look at last year’s figures. Data collected by J.P. Morgan shows that in 2020, retail was the best-performing sector from one week before to one week after Black Friday. From 2010 to 2020, the S&P Retail Select Index gained 3.23% during that timeframe. The S&P 500’s average return was about 1.8%, while consumer discretionary stocks, the industry under which retail falls, posted an average return of 2.57% last year.

Also, consider these figures: J.P. Morgan says that the holiday season, which starts with Black Friday and runs through the end of the year, accounts for about 17% to 18% of US total retail sales (excluding autos).


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When you analyze these statistics, do you think that in 2021, too, the Black Friday event will boost retailers’ sales? Do you believe that tired of lockdowns, people will shop with increased enthusiasm and push retailers’ shares even higher? What company, in your opinion, will come out on top in 2021 – Amazon, Microsoft, Apple, or AT&T?

Watch these companies closely on Black Friday because in the retail sector, the holiday season can make or break the entire year. Analysts at NBC News say that if Black Friday is strong, sales will likely be strong for the season, leading to increased revenues and earnings.



BThe Xtrade team is wishing you a happy Black Friday!

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