US retail sales have surpassed expectations, and industrial production has shown strength. American consumers are helping to stabilize manufacturing through increased sales, with robust consumer demand and economic healing. The Federal Reserve Bank of Atlanta is forecasting the strongest GDP growth since the end of 2021. Resilient demand is benefiting manufacturers, with industrial production at its highest level in nearly five years. While the Fed may not change its stance in November, the economy’s resilience suggests its job of cooling the economy and restoring price stability may not be over yet. However, this economic situation makes it the perfect time to purchase Christmas stocks that have a high growth potential.
American Resources (AREC)
American Resources (NASDAQ:AREC) is a next-generation supplier of high-quality raw materials to the new infrastructure market. The company is focused on the extraction and processing of metallurgical carbon, critical and rare earth minerals and reprocessed metal to be recycled.
AREC stock is up 18.70% YTD, currently trading around $1.61. Financials are faring extremely well, with annual revenue for 2023 increasing 409.00% YoY to $39.47 million. Net income is also on the rise, increasing 95.55% YoY to $-1.45 million. Also, AREC doubled its net profit margin, and EBITDA has gone up 20% annually to $-19.26 million.
Mark Jensen, CEO, and Mark LaVerghetta, VP of Corporate Finance & Communications at American Resources Corporation, will be front and center at the Virtual “Ask the CEO Conference.” This event invites investors to directly engage with company leadership, gaining insights into the future of the company.
This new event has primed AREC for an explosion and the stock is poised for undervalued growth potential. The sector shows no signs of slowing down, and AREC is already ahead of the competition through its contracts and robust financials.
Target Corp (TGT)
Target (NYSE:TGT) is an American retail corporation primarily operating in hypermarkets. It sells products ranging from clothing to electronics to groceries.
TGT’s stock is down 28% YTD and priced at $108.83, but 29 analysts are seeing a 12-month price forecast of up to $184, a 64.3% increase.
Target’s market cap has increased to $430.19 billion in 2023, a 12.5% increase. In addition, revenue went up by 5.11% from 2022-2023 continuing the positive trend Target is seeing financially. These metrics indicate that TGT is both profitable and steadily growing.
The corporation aims to ensure its employees are efficient, fast, knowledgeable and available for every customer to increase customer satisfaction. Target has also built strong brand and customer loyalty over the years. As Christmas approaches, retailers like TGT have historically seen an inflation in stocks and Target is taking full advantage of it by making it more affordable than ever. This includes new deals every single day and pricing thousands of gifts under $25.
Overall, due to the holiday rush paired with Target’s brand loyalty, I give it a “buy” rating and expect to see its stock soar with all the other Christmas stocks.
Walmart (WMT)
Walmart (NYSE:WMT) is an American retail corporation that operates grocery stores and discount department stores.
WMT’s stock is up 10.56% YTD and currently priced at $158.76. 35 analysts’ 12-month price forecasts predict up to $210, an increase of 31.3%.
Walmart saw its market cap rise to $430.19 billion in 2023 representing a 12.5% increase. In addition, revenue grew by 5.11% to $630.79 billion in 2023. Overall, WMT is growing at a steady pace and is extremely profitable.
Walmart differentiates itself from the competition by focusing on low prices on products for its customers. In addition to low prices on its name brand products, Walmart’s Great Value brand allows the company to sell products for a cheaper price. As of April 5th, 2023, Walmart shared a plan to invest in supply chain automation which should boost profits, returns, and operating margins. Christmas is also creeping up, so WMT and other top Christmas stocks should see an inflation in sales as historically consumers tend to buy more in the holiday season.
Overall, due to innovations and the holiday season approaching, I give Walmart a “buy” rating and expect to see its price explode at the peak of Christmas.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
