Wall Street Analysts Recommend Retail Stocks Ahead of Black Friday—Amazon, Walmart, TJX in Focus

(Seoul=Yonhap Infomax) Jang Won Lee Senior Reporter = Wall Street analysts have identified Amazon.com Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT), and off-price retailers as likely winners for the upcoming holiday shopping season ahead of Black Friday.

This outlook is driven by the intensifying 'value-seeking' behavior among consumers, with companies offering both price competitiveness and convenience expected to capture greater market share.

Value-seeking consumption refers to a polarized spending pattern in which consumers are willing to spend on elements they deem important (value), while drastically cutting back on less significant areas.

According to CNBC on the 24th (U.S. local time), Goldman Sachs conducted a survey of 1,000 U.S. consumers and forecast that this year's holiday shopping environment will be "more measured" compared to last year.

The proportion of consumers planning to maintain or increase spending versus last year has declined, with relatively larger spending reductions observed among low- and middle-income households.

Consumers perceive prices as high, promotional activity is becoming more important, and shopping behavior is shifting toward 'downgrade shopping.'

Goldman Sachs analyzed that "in a somewhat subdued holiday shopping environment, retailers offering strong value or excellent fashion will gain market share."

Goldman Sachs selected Amazon as the top shopping destination, followed by Walmart.

Doug Anmuth, analyst at J.P. Morgan, named Amazon as his top idea for the holiday shopping season. He expects U.S. e-commerce holiday sales to grow 7%, with Amazon set to benefit most from this trend.

Both UBS and Goldman Sachs predict strong performance from off-price retailers. Stocks drawing attention in this segment include The TJX Companies Inc. and Burlington Stores Inc.

Jay Sole, analyst at UBS, projected, "While U.S. consumers have sufficient financial resources, growing concerns about the future are leading to a stronger tendency to save, making the 'value for price' offered by off-price channels particularly attractive."

jang73@yna.co.kr

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