St. Patrick’s Day is here and investors around the world are keen on trying their Irish luck for green returns. This will lead to an upsurge in investments, which act as catalysts to the stocks usually pushing them higher. Will it be possible this year when volatility and uncertainty are ruling the market?
The answer is yes. As per the National Retail Federation, more than 125 million Americans plan to celebrate this year’s Irish event and spend an average of $35.37 though down from $36.52 spent last year. After all, St. Patrick’s Day is mostly associated with wearing green, food, drinking and home decoration with shamrocks, leprechauns and pots of gold.
About 56.5% Americans will be spending on food and beverages, 28% on apparel or accessories and 23.3% on decoration. Further, Americans plan to celebrate St. Patrick’s Day in a number of ways with 82.1% wearing green, 31.3% planning a special dinner, 28.7% throwing a party at a bar or a restaurant, and 21.1% attending private parties.
Higher spending on these will definitely boost revenues at retailers, and food and beverage companies. Further, the Irish festival is an opportunity to binge with friends and family at restaurants. So restaurant stocks will see robust performances as well. Betting on stocks and ETFs from these corners of the market should be a winning strategy for investors seeking to hog profits from higher spending on St. Patrick’s Day.
Stocks to Consider
Hormel Foods Corporation (HRL)
In the U.S., St. Patrick’s Day is associated with the consumption of corned beef though it is not an Irish national dish. Corned beef is used as a substitute for bacon by Irish-American immigrants and a number of companies produce this product in various forms. One such company is Hormel Foods which markets corned beef through the brand name – Hormel Mary Kitchen hash. It also offers several recipes to prepare a wide range of corned beef at home. The stock has a Zacks Rank #1 (Strong Buy).
The Boston Beer Company Inc. (SAM)
The Irish festive is also the fourth-largest drinking day in the U.S., behind New Year’s Eve, Christmas, and Fourth of July. Americans generally consume Guinness beer and Irish whiskey in large amounts, and Samuel Adams Irish Red is one of the famous brands for Irish Red Ale. This is produced by The Boston Beer Company that sells approximately 60 beers under this brand name. SAM has a Zacks Rank #3 (Hold).
BJ’s Restaurants Inc. (BJRI)
