5 stocks poised to benefit as spending on Halloween celebration increases

Total Halloween spending is projected to hit a whopping $10.6 billion, beating 2021 spend of a record $10.1 billion, according to the latest data from National Retail Federation (NRF).

The spike is driven by increased participation in Halloween-related activities, which are expected to resume pre-pandemic levels.

According to the NRF data, 69% of consumers plan to celebrate the holiday this year, up from 65% in 2021. It is closely comparable to 68% in 2019, considered the benchmark year for the pre-pandemic scenario.

Total spending on costumes, decorations, and candy, is anticipated to hit record levels. The top ways consumers are planning to celebrate include handing out candy (67%) and decorating their home or yard (51%), followed by dressing up in costume (47%).

Spending on kids' and adult costumes is projected at $2.9 billion this year, marking the highest amount since 2017.

Halloween's ever-increasing popularity and the boost it provides to economic activities could offer investors an opportunity to gain from seasonal stocks that capitalize on the Halloween bandwagon.

Halloween consumer discretionary majorly constitutes candies, chocolates, costumes and pets' apparel, food and beverages, home improvement items, movies, and video or computer games.

What if you could invest in stocks that benefit from Halloween?

Here we cite five companies that incorporate a few of these Halloween-inspired items and could, thereby, get a financial boost during Halloween:

*CMP is the price as of US markets close on Oct 20, 2022

The Hershey Company (HSY) is the first name that clicks while discussing candies. The company is well-known for its collection of chocolate products and confectionaries.

The company also sells pantry items like baking ingredients, spreads, and toppings, and, as well as mints, gums, and meat snacks.

Sales of chocolate and candy are expected to surge by 5% for Halloween 2022, according to National Confectioners Association (NCA), which could be a key catalyst for Hershey’s financial performance in Q4.

Hershey has a market cap of nearly $45.43 billion, and the stock is up nearly 17.1% year to date.

Another beneficiary that could capitalize on increased demand for candy is Mondelez International (MDLZ). Mondelez has iconic brands like Oreo, Cadbury, Halls, Trident, and Nabisco, in its umbrella.

The company seeks to hop on to the Halloween craze with an “eerie-sistible” line up for all. The company’s Hallowween portfolio boasts of impressive offerings Oreo Spooky Biscuits, Cadbury Skeleton Fingers, Cadbury Mini Goo Heads (now available in clip-strip), Cadbury Dairy Milk Buttons Treatsize Bag, Cadbury Fudge Treatsize Bag, Cadbury Crunchie Treatsize Bag, Cadbury Freddo & Friends Treatsize Bag, and Cadbury Heroes Treatsize Bag, to mention a few, making it a compelling option for the consumers gearing up fo Halloween celebrations.

Mondelez has a market cap of nearly $78.36 billion, and the stock is down nearly 13.4% year to date.

Walmart (WMT) makes it to the list backed by comprehensive range for Halloween in costumes, spooky décor and popular seasonal products like caramel apples, pumpkins, squishmallows or bags of bones.

The company’s dedicated Halloween selection for unique or customized, handmade pieces, be it fog machines, inflatables, or skeleton pieces, available at competitive prices, appear to be a big hit.

This could offer a boost to the company’s holiday-quarter performance.

Walmart has a market cap of nearly $78.36 billion, and the stock is down nearly 6.9% year to date.

The TJX Companies, Inc. (TJX) operates as an off-price apparel and home fashions retailer with dedicated 1,290 T.J. Maxx, 1,157 Marshalls, 862 HomeGoods, 62 Sierra, and 40 Homesense stores.

The company was early to pick up the Halloween fervour, as it started selling Halloween décor online, from mid of June itself.

Moreover, the company appears well-poised to capitalize on the increased spend given that its Halloween-themed merchandice is quite popular amongst the masses.

The TJX Companies has a market cap of nearly $76.2 billion, and the stock is down nearly 13.2% year to date.

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