3 Overlooked Stocks That Could Soar by Christmas

Stocks to buy
Time sure flies fast; we’re nearing the end of July, and the holiday season is fast approaching. The anticipation for the festivities also comes with busy days of last-minute shopping and family trips. With that in mind, there’s also a unique phenomenon called the “Christmas Rally,” and today, we’re rounding up a short list of stocks that could soar by Christmas.
The Christmas Rally, sometimes called the Santa Claus Rally, happens around the days or weeks leading up to Christmas. This yearly event usually means a rise in stock prices, and as such, investors eagerly await this time to bag last-minute profits. Now that you’re aware of the Rally, the next question is, what are the stocks to buy for Christmas?
In this article, we’ll review three stocks that haven’t yet caught up with the recent stock market rally and could soar by Christmas. Not only that, these names have historically performed well toward the end of the year, resulting in potential profits before 2024.

Target Corporation (TGT)

Image of the Target (TGT) logo on a storefront.

Source: jejim / Shutterstock.com
Target Corporation (NYSE:TGT) is a general merchandise retailer in all 50 states and the District of Columbia. The company sells various goods and merchandise, including apparel, electronics, food and beverages, household essentials, and more. Target operates 1954 stores in the US and its online presence: Target.com.
Target’s stock has been underperforming after hitting its peak last November 15, 2021, at $268.98. Today, TFT trades near its pre-pandemic levels of 2019. Despite that, the company doesn’t seem to be worried about its upcoming quarters. Not only that, it recently announced a 1.9% dividend increase. Target’s price action during December shows that it generally rises during the month as consumers flock to buy presents, groceries, and other goodies for their last-minute shopping. As a result, Target is one of the overlooked stocks with high potential for a comeback this Christmas season.

Etsy (ETSY)

Etsy logo is over an orange background with a little shopping cart with packages in it. ETSY stock.

Source: Sergei Elagin / Shutterstock
Etsy (NASDAQ:ETSY) is an e-commerce company that provides independent sellers and buyers with a marketplace to acquire handmade products, toys, clothing, footwear, craft supplies, and vintage items. This is done primarily through Etsy.com, the company’s online marketplace, where entrepreneurs, designers, and artists take advantage of the site’s “eBay for artists” model.
Etsy also operates two specialized websites: Depop and Reverb. On Depop, users buy and sell new and used pieces of clothing. In fact, Depop is one of the internet’s go-to places for finding vintage fashion. The other site, Reverb, operates similarly but caters to musical instruments, gears, and other accessories.
With its focus on unique gifts and crafts, ETSY is poised to be one of the stocks likely to soar during the gift-giving season, especially with the ongoing market recovery and steadily lowering inflation. And since 2021, ETSY has had a noticeable chart pattern that usually starts with a marked increase between October and January, followed by a slight drop and sideways movement during the mid-year. Investing in ETSY today may give investors an excellent entry point if history is to repeat itself.

Home Depot (HD)

Home Depot (HD) storefront on a sunny day

Source: Jonathan Weiss / Shutterstock.com
Home Depot, Inc. (NYSE:HD) is a well-known home improvement retailer that offers various home improvement products ranging from hardware supplies, building materials, construction products, appliances, and others. It is the largest home improvement retailer in the United States, with more than 2,300 stores operated by 475,000 employees across North America and other U.S. territories.
Consumers flock to Home Depot during the Christmas season to buy Christmas trees, decorations, and other items to complete their holiday shopping list. Like with similar businesses, the tide of consumers often leads to notable boosts in sales, making Home Depot an attractive investor choice. Aside from that, the stock has recently broken out of its $280-$300 sideways price range in a display of recovery. This year, HD also announced a dividend increase and added shareholder value. Stack those reasons up, and Home Depot could be one of the best overlooked stocks to watch out for this coming December.
On the date of publication, Rick Orford 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.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.