The Oprah’s Favorite Things list provides businesses and entrepreneurs a great chance to get some much-needed recognition. Whether it be through product sales or just public relations, this is one way that everyone can win.
Behind the clothes, gadgets and culinary products listed are entities that will get a substantial boost from being one of Oprah’s favorites. A few minutes on her show might mean millions in additional revenue for these firms — which means more money to spread around among investors.
Keeping this in mind, here are five stocks that will do well because of Oprah’s ringing endorsement:
- Deckers Outdoors (NYSE:DECK)
- Starbucks (NASDAQ:SBUX)
- Amazon (NASDAQ:AMZN)
- Samsung (OTCMKTS:SSNLF)
- Philips (NYSE:PHG)
Oprah’s Favorite Things: Deckers Outdoors (DECK)
Uggs have been derided for being ugly or just a fad for years. However, Oprah has been a fan of Ugg boots for a long time. She gave them away on her first-ever Favorite Things show. On the latest list, she is very happy with the new Ugg Gertrude coat.
The company behind the product, Deckers Outdoor, is an excellent enterprise. It reported $721.9 million in revenue in its fiscal 2022 second quarter, a year-over-year (YOY) increase of almost 16%. Net income was $102.1 million, up sharply from the year-ago figure of $101.6 million and significantly more than analyst expectations.
Deckers is projecting full-year earnings per share (EPS) in the range of $14.15 to $15.15 per share for fiscal 2022, up from the previous forecast of $14.45 to $15.10 per share.
During the first half of this fiscal year, Deckers experienced a sales jump of 35% over last year. Diluted EPS rose to $5.37 compared to $3.30 in the year-ago period.
While its products aren’t included on her Favorite Things list this year, Oprah and Starbucks have a long association with each other. Oprah and her boyfriend, Stedman Graham, love to start their morning with a cup of chai from Starbucks-owned Teavana. She especially enjoys the Maharaja Chai Oolong, which was included in her 2013 Favorite Things list.
In a move to bring more customers into the store, Starbucks announced that it would be partnering with Oprah Winfrey for her Chai tea in 2014. The new flavor was an all-natural herbal blend of Oprah Chai tea and was available for a limited time.
Interestingly, on a personal front, Oprah revealed she goes to grab her Starbucks herself when she was promoting A Wrinkle In Time alongside Reese Witherspoon and Mindy Kaling. A brand like Starbucks is ubiquitous, but that kind of star power does not hurt.
If we talk about the company itself and its fundamentals, Starbucks is not putting a foot wrong at the moment. It recently reported a fiscal fourth-quarter net income of $1.76 billion, or 1.49 per share. That’s up significantly from $392 million, or 33 cents per share, in the year-ago period.
Investors need to keep an eye on disappointing sales growth in China and increasing costs. It will take a couple of quarters for all these issues to clear up. In the meantime, keep SBUX stock on your radar.
Oprah’s Favorite Things: Amazon (AMZN)
Amazon has featured heavily in Oprah’s Favorite Things list in the past. This year, its Echo Show 10 made an appearance.
Not only that, but Oprah is an avid book reader. The billionaire entrepreneur is also known for Oprah’s Book Club, which is similar to her annual gift list.
In past iterations of her iconic lists, she has included the Kindle as one of her favorite items. In addition, you can purchase What Happened to You?, a book by Bruce D. Perry and Oprah Winfrey, alongside all of Oprah’s Favorite Things on Amazon.
For Amazon, the endorsement does not hurt, especially in a year of new beginnings. Jeff Bezos announced he would be handing over the reins of Amazon to his long-time lieutenant, Andy Jassy. He is now focusing on Blue Origin, his space exploration company. Stockholders will miss Bezos at the helm, considering his success in transforming Amazon into the juggernaut that it is today.
Much like every other company out there, AMZN is also suffering from global supply chain issues. However, because of the cash at its disposal and its strong history, it continues to be a thoroughbred among tech stocks.
Samsung’s products are often on Oprah’s radar. The Terrace outdoor television made it onto Oprah’s holiday gift list last year. It offers all of the benefits of Samsung’s QLED 4K line while being resistant to bad weather conditions.
In prior editions of the list, the Galaxy Gear smartwatch and Galaxy Note 3 featured prominently.
Samsung’s recovery from the pandemic has been astounding. The company was rocked by the economic crisis in 2020, but it rose to new heights with record revenue for three consecutive quarters. It reported a record 73.98 trillion South Korean Won, or approximately $63 billion, in sales for Q3.
Despite the global chip shortage, Samsung’s memory products are still in high demand. Due to shifts toward hybrid work, people will continue to buy more solid-state drives (SSDs) and random access memory (RAM) chips for their servers.
Even as raw material costs rise consistently, Samsung has maintained high profits. Logistics hikes cut into its consumer electronics division through higher pricing for memory chips.
Oprah’s Favorite Things: Philips (PHG)
Two Phillips products made it onto this year’s list: the Philips Pasta Maker Plus and Philips One Rechargeable Toothbrush by Sonicare.
It is not often that you find two products from a brand on Oprah’s list. This ringing endorsement from one of the foremost celebrities of America is a stellar achievement for Philips.
It’s a much-needed boost for investors, who are reeling from the recent earnings report. Philips reported a notable rise in net profit for the third quarter but sustained an unexpected decline in sales.
The Dutch medical-technology group attributed this to supply chain issues and longer lead times. Considering these problems, Philips had to revise its earnings outlook. CEO Frans van Houten believes supply chain issues will now cost 200 million Euros in lost revenue, up sequentially from 150 million Euros.
Nonetheless, Philips is a fantastic stock. The company has seen significant growth in recent years, meaning the recent struggles are an excellent opportunity for you to purchase its shares.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above.