In this article, we discuss the 5 best seasonal stocks to buy now. If you want to read our detailed analysis of the seasonal stocks, go directly to the 15 Best Seasonal Stocks to Buy Now.
5. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 59
MGM Resorts International (NYSE:MGM) ranks fifth on our list of the best seasonal stocks to buy now. It is an American hospitality and entertainment company that is widely known for its resorts. The company’s resorts and unique hotels are famous among tourists and locals during the holiday season.
Recently, Wells Fargo initiated its coverage on MGM Resorts International (NYSE:MGM) with an ‘Overweight’ rating and a $55 price target. The firm states that the company is well-positioned to benefit from the Las Vegas strip and its sports betting and iGaming platform, BetMGM, which is one of the biggest sports betting platforms in the U.S. In Q2 2021, MGM Resorts International (NYSE:MGM) posted an EPS of -$0.13, beating the estimates by $0.24. The company reported revenue of $2.27 billion, up 683.3% from the prior-year quarter. Since the beginning of the year, MGM Resorts International (NYSE:MGM) delivered a 39.8% return to shareholders, while the stock gained 96.9% in the past year.
Of the 873 hedge funds tracked by Insider Monkey, 59 hedge funds have positions in MGM Resorts International (NYSE:MGM) in Q2 2021, worth $2.88 billion. This number of hedge funds having stakes in the company grew from 57 in the previous quarter.
Longleaf Partners Fund released its Q2 2021 investor letter and mentioned MGM Resorts International (NYSE:MGM) in it. Here is what the firm has to say:
“MGM (12%, 0.59%), the casino and online gaming company, was a top contributor as it reported a solid first quarter with Vegas EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) doubling sequentially and Regional EBITDAR actually growing strongly YOY due to exceptional cost control. The second quarter saw clear signs of even more growth with a strong rebound in travel to the company’s US properties. MGM also continued to de-risk its value and balance sheet by selling over $1 billion of fully valued shares of its real estate subsidiary MGM Growth Properties in the quarter. On the first day of July, the company announced a transaction to consolidate and sell the real estate of its CityCenter project at a price that was accretive to our value per share.”
4. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 63
Starbucks Corporation (NASDAQ:SBUX) is an American chain of coffeehouses with roaster reserves. The company also rolls out seasonal drinks every year in the name of some of the most famous festivals around the world, which certainly fuels the company’s sales. For example, on Black Friday 2019, the traffic at Starbucks Corporation (NASDAQ:SBUX) grew by 54%, compared with the full-year average. The company ranks fourth on our list of the best seasonal stocks to buy now.
In Q3 2021, Starbucks Corporation (NASDAQ:SBUX) posted an EPS of $1.01, beating the consensus by $0.23. The company’s comparable sales grew by 73% versus the estimates of 69.6%. Due to the strong results, Starbucks Corporation (NASDAQ:SBUX) lifted its FY21 guidance and now expects revenue in the range of $29.1 billion to $29.3 billion. Starbucks Corporation (NASDAQ:SBUX) was favored by Wall Street analysts after releasing solid quarterly earnings. In July, BMO Capital and Cowen both lifted their price targets on the stock to $140 and $135, respectively. In the same month, Jefferies Financial Group also lifted its price target on Starbucks Corporation (NASDAQ:SBUX) to $135, while keeping a ‘Buy’ rating on the shares. In the past year, the stock gained 35.19%.
As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Starbucks Corporation (NASDAQ:SBUX), up from 61 in the previous quarter. The total value of these stakes is $4.75 billion.
Polen Capital, an investment management firm, recently released its Q2 2021 investor letter and mentioned Starbucks Corporation (NASDAQ:SBUX) in it. Here is what the firm has to say:
“For Starbucks, we believe the underlying businesses for the company remain strong. Starbucks has grappled with the impact of the pandemic, but results have continued to show an ongoing post-pandemic recovery.”
3. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 64
The Home Depot, Inc. (NYSE:HD) ranks third on our list of the best seasonal stocks to buy now. It is the largest home improvement retailer in the U.S., which supplies tools, construction products, and services to its consumers. The company sees a big jump in consumer spending in Spring and during the holiday season as well. That is why the net sales at The Home Depot, Inc. (NYSE:HD) grew by 25% in Q4 2020.
In Q2 2021, The Home Depot, Inc. (NYSE:HD) posted a GAAP EPS of $4.53, beating the estimates by $0.11. The company’s revenue stood at $41.1 billion, up 8.1% from the prior-year quarter. On August 19, The Home Depot, Inc. (NYSE:HD) announced a quarterly dividend of $1.65 per share. In August, Citigroup lifted its price target on The Home Depot, Inc. (NYSE:HD) to $375, while keeping a ‘Buy’ rating on the shares. The firm’s analyst, Steven Zaccone sees strong potential in the company’s home improvement retail due to the growing housing market. Since the beginning of the year, The Home Depot, Inc. (NYSE:HD) delivered a 27.1% return to shareholders, while the stock gained 18.5% in the past 6 months.
As of Q2 2021, 64 hedge funds tracked by Insider Monkey have positions in The Home Depot, Inc. (NYSE:HD), worth $4.1 billion. In the previous quarter, the number of hedge funds having positions in the company stood at 68, with a total value of $4.3 billion.
Distillate Capital released its Q2 2021 investor letter and mentioned The Home Depot, Inc. (NYSE:HD) in it. Here is what the firm has to say:
“The largest additions in the rebalance, (included) Home Depot, was around 50 and 40 basis points incrementally. Home Depot outperformed modestly but still lagged its rising normalized cash flow estimate and so was also added to.”
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 87
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that provides travel services for leisure and small business travelers. Along with this, the company also offers travel shopping and reservation services and has over 3 million properties in 70 countries. Expedia Group, Inc. (NASDAQ:EXPE) stands second on our list of the best seasonal stocks to buy now.
Recently, Goldman Sachs initiated coverage on Expedia Group, Inc. (NASDAQ:EXPE) with a ‘Buy’ rating and a $185 price target. Eric Sheridan, the firm’s analyst, believed that the company poses a positive revenue growth in the coming quarters. In Q2 2021, Expedia Group, Inc. (NASDAQ:EXPE) posted revenue of $2.11 billion, showcasing a 272.8% year-over-year growth. The company attributed this growth to the improvement in the global travel sector, as it has also benefited from strong vacation rental performance. Since the beginning of the year, Expedia Group, Inc. (NASDAQ:EXPE) delivered a 15.9% return to shareholders, while its 12-month returns came in at 62.3%.
Daniel Sundheim’s D1 Capital Partners is the company’s leading shareholder with over 7.5 million shares, worth $1.23 billion. As of Q2 2021, 87 hedge funds tracked by Insider Monkey have positions in Expedia Group, Inc. (NASDAQ:EXPE), up from 86 in the previous quarter. These stakes are valued at over $5.9 billion.
ClearBridge Investments released its first-quarter 2020 investor letter and mentioned Expedia Group, Inc. (NASDAQ:EXPE) in it. Here is what the firm has to say:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
1. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 100
Booking Holdings Inc. (NASDAQ:BKNG) tops our list of the best seasonal stocks to buy now. It is an American travel technology company with operations in over 220 countries. Through the company’s website, the consumers can book from over 28 million accommodations, including hotels, apartments, and resorts, and also provides special vacation packages for its consumers.
In August, Credit Suisse lifted its price target on Booking Holdings Inc. (NASDAQ:BKNG) to $3,100 with an ‘Outperform’ rating on the shares. The firm’s analyst, Stephen Ju raised the price target following the solid quarterly results due to the economic recovery in Europe. In Q2 2021, Booking Holdings Inc. (NASDAQ:BKNG) reported gross travel bookings at $22.00 billion, up from $11.9 billion during the same period last year. The company’s revenue of $2.1 billion presented a 242.9% year-over-year growth and beat the market consensus by $270 million. In the past year, Booking Holdings Inc. (NASDAQ:BKNG) has delivered a 34.2% return to shareholders. Recently, BofA has also picked Booking Holdings Inc. (NASDAQ:BKNG) as one of its most favored cyclic companies that would benefit from reopening the economy.
Of the 873 hedge funds tracked by Insider Monkey, 100 hedge funds have positions in Booking Holdings Inc. (NASDAQ:BKNG) in Q2 2021, worth $6.9 billion. In Q1 2021, the number of hedge funds having stakes in the company stood at 103, with a total value of $6.8 billion.
First Eagle Investment Management recently released its Q2 2021 investor letter and mentioned Booking Holdings Inc. (NASDAQ:BKNG) in it. Here is what the firm has to say:
“The leading detractors in the quarter (includes) Booking Holdings Inc. The owner of online reservation sites including booking.com, priceline.com and agoda.com, Booking Holdings generates the majority of its earnings in Europe. While the stock tailed off from its April highs, it appears well positioned for a potential rebound as global travel volumes pick up.”
You can also take a look at 10 Best Undervalued Stocks to Buy Now and 10 Best Spring Stocks to Buy Now
