Most, if not all, stores are open and operating as normal after the initial shutdowns of the COVID-19 pandemic, and for those who are still reluctant to shop in person, the online capabilities at most retailers have improved dramatically. The shopping season looks to be in good shape, with the average American expected to spend about $1,500 on Christmas experiences, gifts and non-gift purchases.

                By                    Taylor DeJesus

See: 5 Things You Must Do When Your Savings Reach $50,000

December is often associated with the “Santa Rally,” which is a phenomenon that causes an increase in the stock market during the last week of December and a few days into the new year — meaning it’s a good time to invest.

If you’re looking to buy some stocks to take advantage of what many businesses hope will be a high-spending season, take a look at these nine names. Although heavily weighted toward retailers, every name on the list has its own niche, from online businesses to mall-based stores. As always, consult with your financial advisor to see if your investment objectives and risk tolerance match any of these names.

Christmas Stocks To Invest In This Holiday Season

Consider the nine businesses below for your Christmas investments.

1. Target Corporation

  • Ticker: TGT
  • Price: $153.88
  • Market Cap: $70.837 billion

As the stock has recently tumbled about 10% from its November high of $180.46, there may now be an attractive entry point on Target stock as the holiday season continues.

  • Ticker: AMZN
  • Price: $88.42
  • Market Cap: $900.799 billion

3. Etsy

  • Ticker: ETSY
  • Price: $130.10
  • Market Cap: $16.742 billion

Since the beginning of 2022, Etsy stock has fallen significantly. However, it has seen quite a few increases in November and the lower price may be beneficial for new investors.

4. Walmart

  • Ticker: WMT
  • Price: $149.35
  • Market Cap: $406.937 billion

5. Dollar Tree

  • Ticker: DLTR
  • Price: $144.98
  • Market Cap: $32.066 billion

Even though Dollar Tree is well-known for its hardships in recent years, the company has since bounced back remarkably well by filling its leadership positions with experienced executives and reevaluating its prices. Dollar Tree’s 2022 third-quarter net sales have increased by 8.1% compared to 2021 third-quarter net sales. 

6. Williams-Sonoma, Inc.

  • Ticker: WSM
  • Price: $110.81
  • Market Cap: $7.376 billion

While Williams-Sonoma may not be an obvious choice, it is one of the United States’ largest e-commerce sites for home goods. The company’s diluted earnings per share increased 13.1% to $3.72 in the third quarter of 2022. While the stock price has fallen throughout 2022, new investors can get a good deal by getting in during the holiday season.

7. Signet Jewelers Limited

  • Ticker: SIG
  • Price: $73.60
  • Market Cap: $3.344 billion

Jewelry being a classic holiday gift, Signet Jewelers is a company you won’t want to forget during your Christmas investing. Its brand names include Kay Jewelers, Zales, Jared and many other popular jewelry companies. Stock prices were concentrated around $63 in November before starting to climb in December, which makes it a more affordable choice for investors on a budget.

8. The Children’s Place

  • Ticker: PLCE
  • Price: $35.94
  • Market Cap: $439.406 million

The Children’s Place owns several clothing brands mostly for children, including PJ Place, which was launched in 2022.

9. Marks and Spencer Group

  • Ticker: MAKSY
  • Price: $3.05
  • Market Cap: $2.991 billion

Marks and Spencer is a retailer that sells items like food and clothing while also offering services ranging from banking to renewable energy. It is a British company that operates internationally, but its stock is extremely affordable at $3.05 as of Dec. 7, 2022. According to Marks and Spencer’s half-year results, the company saw an 8.8% increase in sales comparing its half-year results from October 2021 and 2022.

Investing During The Holidays

The Santa Rally hasn’t yet begun, which means you might have time to get in the market and see some gains. This year has seen many decreases in stock prices amidst economic uncertainty, meaning that investors are more likely to find good deals. However, you must do thorough research before deciding to invest in any company, including the ones listed above.

John Csiszar contributed to the reporting for this article.

  • December has seen positive stock market results 74% of the time since the 1970s.

  • According to the Santa Rally phenomenon, stocks do tend to increase during Christmas.

  • While this isn’t always true, in the majority of cases, the stock market will go up from the end of December into the beginning of January.

  • Retail stores that see good sales during the Black Friday season may be viewed as favorable, and investors may be able to get a good deal by investing in blue chip stocks that dip before the holiday season and then increase during and after Christmas.

  • However, it’s difficult to predict what stocks will go up during Christmas with 100% accuracy. This heavily depends on the economy as a whole and the individual performance of each company.

Data is accurate as of Dec. 7, 2022, and is subject to change.