A series of new restrictions and lockdowns have failed to curtail holiday shopping crowds across Canada to the consternation of our political leaders. Online shopping has also seen a huge uptick during the pandemic. The holiday season is facing a historical disruption due to the pandemic, but that does not mean investors should turn their backs on stocks that benefit during this season. Today, I want to look at three holiday stocks that are worth your attention.
Why Canada Goose is still a solid holiday stock
Canada Goose (TSX:GOOS)(NYSE:GOOS) is a designer, manufacturer, and seller of performance luxury apparel. It has steadily grown its reach worldwide, widely known for its winter coats. The company has also pushed into fall seasonal apparel to grow its reach. Shares of Canada Goose have dropped 12% in 2020 as of close on December 21. I’d warned investors against targeting the stock in the early summer.
The company has historically performed very well during the holiday shopping season. Moreover, Canada Goose has established itself as incredibly forward-thinking with its stellar digital shopping platform. In Q2 fiscal 2021, Canada Goose’s global e-commerce revenue rose over 10%. Its direct-to-consumer revenue climbed 30% in mainland China. Better yet, its adjusted EBIT margin went into positive territory for the first time since the beginning of the pandemic.
Canada Goose is a holiday stock that has a shot at a nice rebound heading into 2021.
Snatch this top stock as e-commerce erupts
Shopify (TSX:SHOP)(NYSE:SHOP) stock has put together a terrific performance in 2020. The top technology stock slipped below the $500 mark during the March market pullback. It last closed at $1,537.44. Its shares have climbed 197% in 2020. Unlike many of its peers, Shopify’s business has benefited from the pandemic. The shuttering of brick-and-mortar retailers have pushed even more shoppers to the digital space. This makes Shopify a very appealing holiday stock.
Cyber Monday sales rose to record levels this year. Predictably, Shopify was a beneficiary. Shopify’s merchants broke $5.1 billion in sales over the Black Friday/Cyber Monday holiday shopping weekend. This was up a stunning 76% from the prior year. In the week leading up to Cyber Monday, sales were up 84% year over year. The sky is the limit for this holiday stock in the 2020s.
One more underrated holiday stock to snag now
AutoCanada (TSX:ACQ) is an Edmonton-based company that operates franchised automobile dealerships across Canada and in some regions in the United States. The stock had a brutal start to the year, but it has staged an impressive comeback. Shares have climbed 105% in 2020.
In Q3 2020, AutoCanada saw revenue increase 3.6% from the prior year to $1.01 billion in the face of the COVID-19 pandemic. Adjusted EBITDA surged 87.9% to $61.1 million. It managed to outperform the Canadian new retail vehicle market for the seventh straight quarter. The company’s efforts to right the course in the beginning of the year have paid off very well so far. AutoCanada is an unsung holiday stock that is worth considering right now.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Canada Goose Holdings, Shopify, and Shopify.