Get some Halloween stock treats and bone up on some investing ideas for your Halloween portfolio.
While you’re shopping this fall for Halloween candy and jack-o-lanterns, you might consider looking at some Halloween-related stocks and investments. The Halloween holiday is big business.
Cameron May, education coach at TD Ameritrade, noted that some Halloween-related companies may be feeling spooked by the ongoing trade war with China, so caution is warranted when going into the pumpkin patch to research Halloween stocks.
“Chinese tariffs might influence traditional Halloween picks, as prices on imported costumes and such are driven higher. Staying with lower-cost and domestic names may serve to counter the tariffs, to some extent,” he said.
May took a look at a few discount sellers in particular. This retail segment gets the majority of Halloween sales, and he pointed out they have historically performed well in the holiday months, spurred by confections and costumes.
May remarked that Dollar General (DG) has had a steadily rising dividend. Big Lots (BIG) uses seasonal sales as a primary strategic category, including a strong holiday department. Another well-known discount retailer, Five Below (FIVE), targets teenage and pre-teen consumers and has 750 stores throughout the United States. Finally, Dollar Tree (DLTR), another variety discount shop, has had positive stock returns in November and December in the last five years and has had a solid one-year run.
May observed that investors should think broadly when it comes to Halloween. It’s more than just trick-or-treating.
“Halloween is becoming more and more of a destination-oriented holiday, with consumers spending larger budgets on travel and event entertainment,” he said.
With that in mind, May noted there are several publicly traded companies related to travel and entertainment that may be more fun than Ichabod Crane’s famous ride through Sleepy Hollow.
Las Vegas is becoming a destination vacation for Halloween. Late October is a good time of year to visit because the days and nights are milder. The Las Vegas Strip also turns into a big costume party on the holiday. One of the publicly traded casinos in Las Vegas, MGM Resorts International (MGM), does big business on the holiday with concerts, parties, and shows.
Disneyland Resorts, part of Walt Disney (DIS), has a not-so-scary celebration: Mickey’s Halloween Party. It actually starts in August and continues through the holiday. It’s so popular that many days sell out before the gates open, May observed.
Six Flags Entertainment (SIX) has Fright Fest. The Halloween-oriented haunt is held at Six Flags locations and has been a staple of the amusement park since 1998.
Another amusement park, Cedar Point (FUN), has held HalloWeekends every year since 1997. They last from the second Friday after Labor Day until the Sunday before Halloween, although sometimes the festivities go into early November.
Travel not your thing? May suggested curling up at home to watch movies from Universal Studios (CMCSA), home of many classic scary movies.
Open and fund a new account
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
TD Ameritrade and all third parties mentioned are separate and unaffiliated companies, and are not responsible for each other’s policies or services.
Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.
Past performance is not indicative of future results. All investing involves risk including the loss of principal.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2019 TD Ameritrade.