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Several top UK stocks are expected to post high profit growth next year after a Christmas spending spree.
Recent data from analytics platform Stocklytics reveals that tesco It added £1 billion in value over the Black Friday weekend! According to the report, that is enough to “pay for more than 36,000 delivery drivers a year“.
Naturally, amazon took the lion's share of sales, totaling £110bn in the same period.
But while Black Friday may have filled many stockings, there's still plenty of spending left to do. I believe the following two retail stocks are well positioned to enjoy further selling as Christmas approaches.
curry
The electronics giant, dating back to 1884 curry (LSE: CURY) is a well-known name in the UK. This is a popular option for buying last-minute gifts on the way home from work on Christmas Eve. Guilty!
From speakers and smartwatches to kids' toys and electric shavers, it's packed with easy gift ideas.
But that's not why I bought the stock earlier this year.
After rejecting takeover bids from Elliot and JD.com In February, Curry's stock price jumped 45% in a matter of days.
At that time, the price had been falling since April 2021, losing 70% of its value. However, the company was confident in the offers.”significantly undervalued” he.
It seems he was right, as the price has continued to rise since then.
It has now risen 73.4% over the past 12 months, approaching the highest level in two years. Cost-cutting exercises combined with sales of ai-enabled laptops and an improved online store helped drive growth.
But as online shopping takes center stage, it risks losing market share to companies like amazon and eBay. You must continue to innovate with unique products and competitive pricing if you hope to remain relevant.
Still, if I had extra money, I would buy more shares today.
card factory
card factory (LSE: CARD) is a gift and party supply store based in Wakefield, UK. Naturally, it's the type of store that will enjoy higher sales during Christmas.
After listing in the London Stock Exchange in May 2014, it initially did well. The price rose rapidly from 200 pence to a high of 399 pence in September 2015.
However, recent performance has been disappointing, with the price falling 40% in the last five years. This follows a devastating fall in September after its half-year profits failed to impress.
Profits for the period fell by almost 50%, falling from £19.2 million to just £10.5 million. This came despite a 5.9% revenue increase, suggesting the company may be spending too much.
If earnings don't improve over the Christmas period, the share price could sink further.
But the low price could also be an opportunity. With earnings expected to rise, its forward price-to-earnings (P/E) ratio is well below average at 5.9. The stock also has decent analyst coverage, with an average 12-month price target of 166p, up 83.8% from the current price of 90p.
But that trajectory could be derailed if a key competitor, moon pigIt steals your sales. The popular online card company is arguably better known as it has spent a lot on marketing. However, with a price up 67.5% this year, it is less likely to enjoy the same growth as Card Factory.
I bought the stock recently, so I don't plan to buy more now. But I'm excited about the future of the company.
