A New Year Resolution Stocks List For Long Term Investing Ideas
New Year Resolutions are a money-making machine. At the top of the resolution list is “lose wight,” “get organized,” “quit smoking” and “stay fit, eat better.” Think of the opportunities.
Who “gets fit” without first buying some new Nike (NKE) sneakers, workout outfit from Lululemon (LULU), or sporting equipment from Dicks Sporting Goods (DKS)? They join a gym, such as Lifetime Fitness (LCUT), and never mind if they stop going after the first week. That money is a one way cash flow – straight to the retailers.
And how about eating better? If they’re committed they will do it right. Start by eating fresh organic food, go to Whole Foods (WFM) or The Fresh Market (TFM). Maybe join Weight Watchers (WTW). Buy vitamins (HLF).
Trade the Trend?
This surge of customers can do wonder for a company’s bottom line, to the point that it may contribute the bulk of the firm’s revenues. But this activity is expected, just as Christmas comes as no surprise to toy stores, and is unlikely to impact share price in the long run.
As for the other side, the fast food chains like McDonald’s and Burger King that see a noticeable drop in customers early January, don’t feel bad. They’ll surely be back. Their bottom line can take the expected hit. Kraft’s (KFT) mac and cheese will be back on the dinner table soon enough.
After establishing that new year resolution stocks are not a short-term play, we must consider the longer term. The reason “get in shape” and “eat bitter” top the resolution list is because they reflect American’s greatest concerns. On average we’re sick and overweight, and desperate for solutions. To that end, investors want to explore the key players in the health food and fitness industries
It’s been argued that an identifiable long-term investment trend is with health. Consider three health food stocks Wholefoods, The Fresh Market and Herbalife. Their long-term growth is impressive, and a next generation of health conscious consumers is expected to push their value higher:
Fitness and yoga-mania have also sent luxury fitness apparel brands Lululemon soaring, The Gap (GPS) is also offering high quality fitness gear. Here we compare these names with Nike .
New Years Stock Infographic: A Pleasing Visual
Kapitall created the following infographic to help you understand the stocks that generate plenty of revenue from resolutions.
No matter if the customers stick to their resolutions, these stocks represent the top reactionary product and services to America’s greatest issues. Are you willing to trade on that? Click on the image to access a variety of tools, such as these average analyst rating charts, to help analyze these names.
Written by Kapitall’s Rebecca Lipman