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The upcoming Fourth of July celebrations are instilling optimism among American investors. While Americans are looking to spend less this year amid sticky inflation, it is a busy time for travel and vacations.
Given increased activities around this day, the holiday fervor leads to some strength in the stock market. The gains will be broad-based, with several industries like transportation, lodging, hotels, restaurants, food and retail seeing a huge boost. We have highlighted some attractive picks on the basis of a solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of B or better, indicating their strong fundamentals and outperformance heading into Independence Day. You can see the complete list of today’s Zacks #1 Rank stocks here.
Total consumer spending for the Fourth of July holiday is expected to reach $9.4 billion, slightly down from $9.5 billion in 2023, according to the National Retail Federation. About 87% of Americans plan to spend $90.42 per person this Independence Day, down from $93.34 in 2023. Cookouts, barbecues and picnics continue to be the most popular activity (66%), followed by fireworks and community celebrations (44%).
According to Numerator, about 94% of consumers plan to make purchases for the Fourth of July, with food items being the most popular (83% plan to purchase), followed by alcoholic beverages (48%), non-alcoholic beverages (38%), decorations (23%) and party supplies (21%). The majority of shoppers plan to buy from grocery or big-box stores. Beer is the preferred alcoholic beverage this Independence Day among those who plan to purchase alcohol.
As such, Independence Day marks the beginning of the busiest half of the year for retailers. Many retailers are already flashing exciting deals for the Fourth of July, and massive discounts are in the cards for this day.
Solid Travel Trends
Travel is in full swing, with the Jul 4 week expected to be the busiest ever. AAA projects that about 70.9 million people will travel 50 miles or more from home on the weekend (Jul 1 to Jul 8), up 5% from last year. Of them, a record 60.6 million people are expected to hit the road, 5.74 million will fly, and more than 4.6 million are expected to travel by other modes of transportation, including buses, cruises and trains.
Low gas prices are encouraging more drivers to hit the road. Prices at the pump are expected to hit their lowest levels since 2021 at $3.49 per gallon, according to a news release from GasBuddy. AAA car rental partner Hertz stated Dallas, Denver, Salt Lake City, Los Angeles and San Francisco are the cities displaying the highest rental demand during the holiday week.
Airports around the United States have been packed as the Fourth of July travel season approaches. The Transportation Security Administration forecasts a record-setting holiday screening period for flyers around Jul 4.
Stocks to Gain
Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The stock has an expected revenue and earnings growth of 3.0% and 11.8%, respectively, for the fiscal year (ending June 2025).
The stock has a Zacks Rank #2 and a Growth Score of B.
Burlington Stores operates as a retailer of branded apparel products and is a Fortune 500 company. It offers products such as ladies' sportswear, menswear, youth apparel, baby furniture, accessories, home décor and gifts, and coats. The stock has an estimated revenue and earnings growth of 9.5% and 25.4%, respectively, for the fiscal year (ending January 2025).
Burlington Stores carries a Zacks Rank #2 and has a Growth Score of B.
Despegar.com provides online travel booking services. It offers online hotels, cars, flights, vacation rentals, packages and ticket booking services. The company is estimated to see revenue growth of 16.3% and earnings growth of 265.2% for this year.
The stock has a Zacks Rank #1 and a Growth Score of B.
United Airlines, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East and Latin America. It transports people and cargo through its mainline and regional fleets. United Airlines said it expects to fly a record 5 million passengers from Jun 28 to Jul 8. Though earnings are expected to decline 1.2% this year, revenues are expected to increase 7.5%.
United Airlines has a Zacks Rank #2 and a Growth Score of B.
Royal Caribbean is a cruise company. It owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Cruising has become popular again and made a remarkable comeback post-pandemic. Royal Caribbean is estimated to see revenue growth of 16.8% and earnings growth of 64% for this year.
The stock has a Zacks Rank #2 and a Growth Score of A.
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5 Stocks to Pop on Fourth of July Celebrations
The upcoming Fourth of July celebrations are instilling optimism among American investors. While Americans are looking to spend less this year amid sticky inflation, it is a busy time for travel and vacations.
Given increased activities around this day, the holiday fervor leads to some strength in the stock market. The gains will be broad-based, with several industries like transportation, lodging, hotels, restaurants, food and retail seeing a huge boost. We have highlighted some attractive picks on the basis of a solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of B or better, indicating their strong fundamentals and outperformance heading into Independence Day. You can see the complete list of today’s Zacks #1 Rank stocks here.
These are Brinker International (EAT - Free Report) , Burlington Stores Inc. (BURL - Free Report) , Despegar.com (DESP - Free Report) , United Airlines Holdings Inc. (UAL - Free Report) and Royal Caribbean Cruises (RCL - Free Report) .
Low Spending
Total consumer spending for the Fourth of July holiday is expected to reach $9.4 billion, slightly down from $9.5 billion in 2023, according to the National Retail Federation. About 87% of Americans plan to spend $90.42 per person this Independence Day, down from $93.34 in 2023. Cookouts, barbecues and picnics continue to be the most popular activity (66%), followed by fireworks and community celebrations (44%).
According to Numerator, about 94% of consumers plan to make purchases for the Fourth of July, with food items being the most popular (83% plan to purchase), followed by alcoholic beverages (48%), non-alcoholic beverages (38%), decorations (23%) and party supplies (21%). The majority of shoppers plan to buy from grocery or big-box stores. Beer is the preferred alcoholic beverage this Independence Day among those who plan to purchase alcohol.
As such, Independence Day marks the beginning of the busiest half of the year for retailers. Many retailers are already flashing exciting deals for the Fourth of July, and massive discounts are in the cards for this day.
Solid Travel Trends
Travel is in full swing, with the Jul 4 week expected to be the busiest ever. AAA projects that about 70.9 million people will travel 50 miles or more from home on the weekend (Jul 1 to Jul 8), up 5% from last year. Of them, a record 60.6 million people are expected to hit the road, 5.74 million will fly, and more than 4.6 million are expected to travel by other modes of transportation, including buses, cruises and trains.
Low gas prices are encouraging more drivers to hit the road. Prices at the pump are expected to hit their lowest levels since 2021 at $3.49 per gallon, according to a news release from GasBuddy. AAA car rental partner Hertz stated Dallas, Denver, Salt Lake City, Los Angeles and San Francisco are the cities displaying the highest rental demand during the holiday week.
Airports around the United States have been packed as the Fourth of July travel season approaches. The Transportation Security Administration forecasts a record-setting holiday screening period for flyers around Jul 4.
Stocks to Gain
Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The stock has an expected revenue and earnings growth of 3.0% and 11.8%, respectively, for the fiscal year (ending June 2025).
The stock has a Zacks Rank #2 and a Growth Score of B.
Burlington Stores operates as a retailer of branded apparel products and is a Fortune 500 company. It offers products such as ladies' sportswear, menswear, youth apparel, baby furniture, accessories, home décor and gifts, and coats. The stock has an estimated revenue and earnings growth of 9.5% and 25.4%, respectively, for the fiscal year (ending January 2025).
Burlington Stores carries a Zacks Rank #2 and has a Growth Score of B.
Despegar.com provides online travel booking services. It offers online hotels, cars, flights, vacation rentals, packages and ticket booking services. The company is estimated to see revenue growth of 16.3% and earnings growth of 265.2% for this year.
The stock has a Zacks Rank #1 and a Growth Score of B.
United Airlines, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East and Latin America. It transports people and cargo through its mainline and regional fleets. United Airlines said it expects to fly a record 5 million passengers from Jun 28 to Jul 8. Though earnings are expected to decline 1.2% this year, revenues are expected to increase 7.5%.
United Airlines has a Zacks Rank #2 and a Growth Score of B.
Royal Caribbean is a cruise company. It owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Cruising has become popular again and made a remarkable comeback post-pandemic. Royal Caribbean is estimated to see revenue growth of 16.8% and earnings growth of 64% for this year.
The stock has a Zacks Rank #2 and a Growth Score of A.