2 Canadian stocks under the radar will benefit from Black Friday
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Black Friday is fast approaching. And you know what it means:
While Black Friday deals can be overrated, there’s no denying that people love them. Compared to the big discounts throughout the Boxing Week store, Black Friday almost looks like a scam. But a lot of best deals on “big ticket” items are Black Friday, so it’s a good time to shop for electronics, for example.
The popularity of Black Friday means that many businesses could make money from it. You probably don’t need me to tell you Amazon, Shopify, and Best buy are going to make a massacre during Black Friday shopping this year. They sure will – and probably a much bigger murder than last year, no less. Recently, China had its own shopping extravaganza in November, 11/11, and its retailers have posted significant year-over-year increases in sales.
So we’re probably going to see all the big ecommerce companies making a lot of money. But there are some lesser known and under the radar companies that will also make money. You might not have heard of these companies, but you could make even bigger gains with these lesser-known players than the big players. In this article, I’ll explore two of these businesses and how they could profit from Black Friday sales.
Cargo plane (TSX: CJT) is a large freight airline that specializes in shipping small overnight deliveries – the types of deliveries that tend to come from companies like Amazon and Shopify. CJT is a major player in e-commerce deliveries in Canada. Its stock skyrocketed in 2020 when other airlines collapsed as it saw an increase in business brought on by the e-commerce boom. Lately things have slowed down a bit, but Cargojet has a chance to make a lot of money from Black Friday.
The easing of COVID-19 retail restrictions has helped decelerate revenue growth for the largest e-commerce companies, and Cargojet’s inventory has predictedly fallen. But Black Friday is another story. It’s still a huge day for shopping, and the closest comparable event in China just posted record numbers. So there are many reasons for optimism here.
Trade at the speed of light
Trade at the speed of light (TSX: LSPD) (NYSE: LSPD) is a Canadian company retail / e-commerce software developer. It develops a number of products and services, including:
- Lightspeed point of sale terminals, which help merchants accept payments.
- The Ecwid ecommerce platform, which is like Shopify.
- A variety of industry specific solutions.
This is exactly the type of business that could profit massively from Black Friday. It could see increased use of its point-of-sale terminals by in-store retailers, as well as an increase in e-commerce user activity. No matter how Black Friday goes (retail or online) Lightspeed makes money. It is therefore an action under the radar to watch next Friday.
Take away food
Black Friday is fast approaching and there has never been a better time to invest in stocks that sell to consumers. Whether you prefer retail or e-commerce, there are opportunities for profit this year. Heck, even the airlines are jumping into the action. The opportunities to take advantage of Black Friday are endless. So maybe the best Black Friday gift you can give yourself is the stock gift.