Try This Holiday 2020 Stock for the Christmas Season
Christmas isn’t quite in the air. But the holiday shopping season is right around the corner… and it’s never too early to think about how this time of year affects the stock market.
So what exactly will the end of the year bring for Wall Street? And what holiday 2020 stock should you consider stuffing in your stocking?
There are a handful of plays that should do well as we head into the last phase of the year and into 2021. This holiday 2020 stock is doing well despite the headwinds of the coronavirus pandemic.
Holiday shopping, particularly e-commerce — perhaps the darling of the pandemic — is poised to be strong. In fact, more shopping will be done online this season than any before as malls go the way of the dinosaur.
Holiday 2020 Stock: The Longer in Place, the Higher the Space
Like countless others before it, this stock has been trading in a long, narrow range for a number of years. And what happens occasionally is Wall Street doesn’t understand the business model or whatever, and sometimes there’s a maturation that needs to take place before a stock is really noticed.
This happened with AutoZone Inc. (NYSE: AZO) back in the 1990s. It’s a classic example of a cash-rich, high-cash-generating stock that traded sideways for a number of years before breaking through to the upside.
Dollar Tree Inc. (Nasdaq: DLTR) is another one of those stocks. Back in the 1990s and early 2000s, people didn’t quite understand what a dollar store was. They didn’t have a big following on Wall Street, and Dollar Tree also moved sideways for years before finally breaking through.
As the old trading saying goes: The longer in place, the higher in space…
And that’s the case for my holiday 2020 stock. It’s so cheap relative to the profits the company earns, it’s going to move up to its trendline and finally break through. I see this as a high-probability, breakout trade.
This company has proven it can do well despite the overall negativity we’ve seen in the retail sector. This is one stock that’s been proving the naysayers wrong. So check out my short video on my top holiday 2020 stock, and let me know what you think in the comments below. Also check out my guide to how much you should invest in stocks.