Best Black Friday Investments

Written By Brian Hicks

Updated May 15, 2024

A penny saved is a penny earned.

Black Friday is an example of that old adage, which was first published in the Pall Mall Magazine in 1899. It’s why so many people rush out to shop on Black Friday to save a penny.

Christmas giftsBut you don’t have to skip Thanksgiving desserts just to save a penny; you can earn a penny by investing in all of the hoopla.

From Thanksgiving to Christmas, retailers and e-tailers scurry to get as many customers as possible. Actually, 40 percent of American shopping happens during Black Friday and Cyber Monday, as reported by Forbes.

People love to snag a deal of a lifetime, and you can snag an investment return of a lifetime because of that.

There are two major options for you for the upcoming weeks. You can invest in Black Friday’s brick and mortar stores, or you can invest in Cyber Monday’s e-tailers. Depending on the companies you invest in, the amount of your return can vary.

Cyber Monday

You can probably guess which shopping event is gaining in popularity. With everyone running around with their smartphones attached to their hands, tablets in their bags, and laptops in front of them, it just makes sense for people to favor the ease of shopping online.

In fact, Cyber Monday sales grew an astounding 16.8% from 2011, while Black Friday sales fell 1.8%, according to Kapitallwire. Poor Black Friday…the crazy rush to wrestle over the latest toy is losing its luster. Instead, people are pounding on keywords and cursing at screens when they lose out on limited availability.

For this year, Internet sales companies are expecting a huge rush. (NASDAQ: AMZN), for example, has hired 70,000 employees to handle it. The biggest store in the country, Wal-Mart (NYSE: WMT), only hired 55,000. It’s easy to see which one is expecting to have more business.

Amazon has even made a deal with the U.S. Post Office to instate Sunday deliveries to handle all of the packages customers order. Yes, Sunday delivery – because six days isn’t enough.

FedEx (NYSE: FDX), meanwhile, expects an increase in shipments of 13%, according to Kapitallwire, which equates to about 22 million packages.

UPS (NYSE: UPS) believes it will see 10% more in packages, or about 32 million.

Black Friday

The economy is doing better, but it’s still not at the point where people are throwing money around. That’s why these deals are even more coveted now. Retail stores may not get as much attention as online ones, they will still be busy during Black Friday until Christmas.

In particular, stores selling discounted items, such as Target (NYSE: TGT) and Kohl’s (NYSE: KSS), will receive a lot of attention. These two stores will see an increase of 19% in home furnishing purchases, Forbes reports.

What people really want this year are home electronics. People will buy 21% more electronics than last year, so electronics stores such as Best Buy (NYSE: BBY) will likely be happy this year.

Many stores are opening as early as 6 PM, others at 8PM, and the ones that are behind in the game of Black Friday are still opening at midnight. Someone’s going to need to change the name to Black Thursday soon.

So let’s get into how to profit from the big sales about to hit on Thanksgiving night.

Investing in Holiday Spending

While it’s not going to be as profitable as Cyber Monday, Black Friday is still going to be gaining you returns.

Since people are trying to find the best value possible, set your eyes on Target (NYSE: TGT), Kohl’s (NYSE: KSS), and maybe even Wal-Mart (NYSE: WMT).

Definitely look into electronics stores. Best Buy (NYSE: BBY) is the most popular around.

For Cyber Monday, it goes without saying that (NASDAQ: AMZN) is a biggie. The company has hyped up its Cyber Monday deals a lot, and it is going to be rolling out values people will be buying up rapidly. If you have the money for Amazon’s shares, you may want to go ahead and get in on the profits.

eBay (NASDAQ: EBAY), (NASDAQ: OSTK), and HSN (NASDAQ: HSNI) are also big players in the e-tailer industry. They are best for investors who want a slice of the pie without having to sink a bunch of money into the investment.

Why should you sit back and let companies profit from the biggest shopping time of the year? You’re an investor, and investors get in on what businesses are doing successfully.

Now you know the stores and e-tailers that are most likely to make great profits at the end of the year. So start taking a look at them, and make a decision to bank gains from the millions of Americans who will rush out to save a penny while you sit back to enjoy your pumpkin and pecan pie.


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