Black Friday appears to have gone better this year than expected. Despite several retailers forecasting lower consumer spending, preliminary data shows that shoppers spent a record $9.8 billion in online sales during the Thanksgiving holiday event, up 7.5% from last year. This is the latest indication that consumer spending remains strong, which is good news for the stock market rally that has been gaining momentum since the start of November. All the major U.S. indices are up after declining in the three previous months. And some stocks are doing better than others, outperforming by a wide margin and racking up impressive gains as we head into year end. Here are three post-Black Friday stocks to buy for big gains.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) has been a Silicon Valley stalwart since 1993. The company produces and manages high-performance servers for the technology industry. Super Micro Computer’s stock never did too much until the company signed an agreement with Nvidia (NASDAQ:NVDA) to produce artificial intelligence (AI) servers for the chipmaking giant. Now, SMCI stock is up 240% this year, mirroring the gain in NVDA stock.
Super Micro Computer’s shares have been leading the Russell 2000 Index higher this year in much the same way that Nvidia has been leading the Nasdaq exchange. And, despite the big run this year, analysts see more upside ahead for SMCI shares. The median price target on Super Micro Computer’s stock is 42% higher than current levels. There’s an opportunity to buy on the dip right now, with the company’s share price having pulled back 20% since a peak reached in August of this year.
Vontier (VNT)
Now for an automotive stock you may not have heard of. That would be Vontier (NYSE:VNT). The company was originally part of Danaher (NYSE:DHR) before being hived off from that company and going public on its own in 2020. Vontier makes software and hardware for the automotive industry, as well as the gas pumps found at gas stations and electric vehicle charging technologies. While the company gets little attention in the financial press it plays an essential role in the motor vehicle sector.
This fact is reflected in VNT stock, which is up 75% over the last 12 months. That’s more than double the 30% gain in shares of Tesla (NASDAQ:TSLA) over the same time period. And despite the big move in its share price, VNT stock still looks comparatively cheap trading at just 15 times future earnings estimates. Plus, Vontier offers its shareholders a small quarterly dividend of 3 cents a share. Not huge, but impressive given that Vontier has only been its own company for a few years.
Fair Isaac (FICO)
Talk about a rally. Shares of data analytics company Fair Isaac Corp. (NYSE:FICO) have been red hot lately. In the last month, the company’s stock has gained nearly 30%, more than triple the increase in the benchmark S&P 500 over the same period. Year-to-date, FICO stock is now up 80%, bringing its five year increase to 440%. Not bad for a 70-year-old company that’s best known for its FICO Score, the primary measure of consumer credit risk used by banks and other financial institutions in the U.S.
With interest rates at their highest level in more than 20 years, demand for FICO scores has been rising as lenders assess the ability of individuals to manage loans in the current environment. This has given Fair Isaac’s earnings a boost. The company recently reported net income of $4.01 per share, up 13% from $3.55 a year earlier. Revenue in the latest quarter came in at $389.7 million, up 12% from $348.7 million a year earlier. Sales were up more than 10% across all of the company’s business units.
On the date of publication, Joel Baglole held long positions in NVDA, DHR and FICO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
