5 Stocks for the Holidays

Michael is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

It’s that time of year.

That sentence may evoke different thoughts for everyone, from finals for students to serving Santa duties for parents. However, no matter the demographic, this holiday season, there’s a little something for everyone in the stock market.

While it can get easy to forget about investing in the few most hectic weeks of the year, many stocks thrive the most around this time of year, shooting upwards as the snow falls downwards. Let’s take a look at what some of these stocks are, and if you should expect them to repeat history.

Mattel (NASDAQ: MAT)

Mattel is one of the ultimate game creators, ranging from classics like Pictionary to new favorites like Apples to Apples. Odds are, there is a Mattel game somewhere around your house, especially if you house younger boys: Mattel is also a large video game producer. The truth is, fourth quarter earnings for Mattel skyrocket nearly every year, and why wouldn’t they? Mattel is a surefire bet almost every year to produce strong fourth quarter results.

Weyerhaeuser (NYSE: WY)

Surprisingly, in the past, Weyerhaeuser has not had incredible holiday season results. However, last year, they turned it around, shooting up earnings higher for the holidays than ever before. Simply, people use a lot of trees in the Christmas season; and, regardless of who you worship, everyone gets cold, and firewood is one of the greatest ways to solve that. Weyerhaeuser is a lumber giant, and a stock you should look to for strong results this season as trees and firewood are consumed at a rate unrivaled by any other season.

Wal-Mart (NYSE: WMT)

Wal-Mart almost always posts record earnings sometime in January or February. The giant retailer specializes in…well…everything! From toys for the little ones to jewelry for that special one, odds are you’ll find it at Wal-Mart. And, now, the ingredients for that special occasion dinner can be found in the same spot you buy your gifts. Plus, don’t forget it’s rollback season at the country’s biggest source for everything Christmas.

Target (NYSE: TGT)

For many of the same reasons that the aisles of Wal-Mart will be packed this season, Target will be buzzing. This retail giant is another company that thrives on holiday cheer. Target has the toys, clothes, and anything for you to put under the tree this year. Look for pretty much any large retailer like Wal-Mart or Target, historically strong holiday season stocks, to be successful this Christmas for you.

McCormick (NYSE: MKC)

No holiday dinner is complete without at least a couple spices from this spice giant. McCormick products can be found in nearly every kitchen across America, and are especially put to good use at this time of year. Plus, with a 9.4% 3-year average dividend growth rate, you’ve got to make sure McCormick is in your kitchen and in your portfolio this holiday season.

The peak of consumption is right now—stocks thrive, for the most part, in the holiday season. However, a couple holiday specialists could keep you from sending your portfolio home for the holidays. These stocks are great all-around stocks that especially flourish at this time of year, so while it is easy to forget about investing, take a minute to consider these and other great holiday stock choices. 


Michael Nolan has no positions in the stocks mentioned above. The Motley Fool owns shares of Mattel and Weyerhaeuser Company. Motley Fool newsletter services recommend Mattel and McKesson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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