Halloween Stocks: Potential Investment Opportunities Amid Market Uncertainty

While you’re shopping this fall for Halloween candy and jack-o-lanterns, you might consider looking at some Halloween-related stocks and investments. The Halloween holiday is big business.

Treat Your Portfolio? Halloween Stocks

Cameron May, education coach at TD Ameritrade, noted that some Halloween-related companies may be feeling spooked by the ongoing trade war with China, so caution is warranted when going into the pumpkin patch to research Halloween stocks.

“Chinese tariffs might influence traditional Halloween picks, as prices on imported costumes and such are driven higher. Staying with lower-cost and domestic names may serve to counter the tariffs, to some extent,” he said.

May took a look at a few discount sellers in particular. This retail segment gets the majority of Halloween sales, and he pointed out they have historically performed well in the holiday months, spurred by confections and costumes.

May remarked that Dollar General (DG) has had a steadily rising dividend. Big Lots (BIG) uses seasonal sales as a primary strategic category, including a strong holiday department. Another well-known discount retailer, Five Below (FIVE), targets teenage and pre-teen consumers and has 750 stores throughout the United States. Finally, Dollar Tree (DLTR), another variety discount shop, has had positive stock returns in November and December in the last five years and has had a solid one-year run.

Data source: National Retail Federation

A Ghostly Ride

May observed that investors should think broadly when it comes to Halloween. It’s more than just trick-or-treating.

“Halloween is becoming more and more of a destination-oriented holiday, with consumers spending larger budgets on travel and event entertainment,” he said.

With that in mind, May noted there are several publicly traded companies related to travel and entertainment that may be more fun than Ichabod Crane’s famous ride through Sleepy Hollow.

Las Vegas is becoming a destination vacation for Halloween. Late October is a good time of year to visit because the days and nights are milder. The Las Vegas Strip also turns into a big costume party on the holiday. One of the publicly traded casinos in Las Vegas, MGM Resorts International (MGM), does big business on the holiday with concerts, parties, and shows. 

Disneyland Resorts, part of Walt Disney (DIS), has a not-so-scary celebration: Mickey’s Halloween Party. It actually starts in August and continues through the holiday. It’s so popular that many days sell out before the gates open, May observed.

Six Flags Entertainment (SIX) has Fright Fest. The Halloween-oriented haunt is held at Six Flags locations and has been a staple of the amusement park since 1998.

Another amusement park, Cedar Point (FUN), has held HalloWeekends every year since 1997. They last from the second Friday after Labor Day until the Sunday before Halloween, although sometimes the festivities go into early November.

Travel not your thing? May suggested curling up at home to watch movies from Universal Studios (CMCSA), home of many classic scary movies.

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Debbie Carlson is not a representative of TD Ameritrade, Inc. The material, views, and opinions expressed in this article are solely those of the author and may not be reflective of those held by TD Ameritrade, Inc.