Thanksgiving week is not just a celebration of food and family, but also a historically strong period for U.S. stocks. Since 1961, the S&P 500 Index (SPX) has risen about 75% of the time during this week, with average gains of about 0.3%.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
In particular, the Wednesday before Thanksgiving is historically the strongest day. Meanwhile, the Friday after Thanksgiving also tends to deliver gains, helped by retail optimism and lighter trading volumes.
This Thanksgiving week, retail giants Amazon (AMZN) and Walmart (WMT) will be in focus due to the potential for a record-breaking holiday shopping season expected to exceed $1 trillion in U.S. retail sales. At the same time, the sports betting company DraftKings (DKNG) is also expected to benefit from the Thanksgiving football games.
Why Thanksgiving Week Tends to Be Bullish
The holiday-shortened trading week often brings a mix of optimism, lower trading activity, and a seasonal uptick in consumer spending that can lift certain sectors.
The “holiday spirit” often lifts investor sentiment. Also, Black Friday through Cyber Monday marks the start of a major shopping surge, which frequently supports retail and consumer discretionary stocks.
With many institutional investors away, trading volumes remain thinner, meaning even smaller moves can push markets higher. Together, these factors explain why Thanksgiving week has a long track record of being bullish for U.S. equities.
3 Stocks to Watch This Thanksgiving Week
Amazon: As a leader in e-commerce, AMZN is expected to capture a large share of online holiday spending. Its strong logistics network and growing advertising business will further support revenues.
Recently, Needham analyst Laura Martin reaffirmed her Buy rating on Amazon stock with a $265 price target. She believes AMZN is using generative AI to launch new products and drive revenue growth across consumer and enterprise segments. Also, Amazon’s growing focus on advertising, cloud services, and AI positions it more toward enterprise markets, which she sees as carrying lower regulatory risk.
Currently, Wall Street has a Strong Buy consensus rating on Amazon stock based on 41 Buys and two Holds. The average AMZN stock price target of $294.97 indicates a 32.46% upside potential from current levels.
Walmart: The retailer sees strong engagement during Thanksgiving week. Its expanded holiday offerings and free delivery promotions help attract value-conscious shoppers amid rising grocery prices.
Morgan Stanley analyst Simeon Gutman reiterated a Buy rating on WMT stock, citing strong growth and leadership. Gutman expressed confidence in incoming CEO John Furner, whose deep company experience supports a smooth transition and continued success.
Turning to Wall Street, WMT stock has a Strong Buy consensus rating based on 28 Buys assigned in the last three months. At $116.54, the average Walmart stock price target implies a 15.83% upside potential.
DraftKings: DKNG is expected to see a surge in activity thanks to Thanksgiving football games, one of the busiest betting periods of the year. With sports betting expanding across more U.S. states, DraftKings may benefit from a boost in user engagement during the week.
Analyst Bernie McTernan from Needham has reiterated a Buy on DraftKings stock, citing strong momentum in sports betting, iGaming, and upcoming prediction markets. He also sees high customer retention, NBA growth, and the ESPN partnership as key drivers of future success.
On TipRanks, DKNG stock has a Strong Buy consensus rating based on 23 Buys and five Holds assigned in the past three months. Further, the average DraftKings stock price target of $44.25 per share implies 52.48% upside potential.
