Zacks Analyst Blog highlights Chipotle Mexican Grill, Dillard’s, American Airlines Group, Canadian National Railway and MakeMyTrip | So Good News


For immediate release

Chicago, IL – November 23, 2022 – announces the list of stocks featured in the analyst blog. Each day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured in the blog include: Chipotle Mexican Grill CMG, Dillard’s DDS, American Airlines Group AAL, Canadian National Railway CNI and MakeMyTrip Ltd. MMYT.

Here are the highlights from Tuesday’s analyst blog:

5 stocks that promise big gains this Thanksgiving week

With the start of Thanksgiving Week, investors are bullish on US stocks, given their history of strong market performance. This is especially true as the shortened holiday week is usually a bullish fest for equity investors, even with low volumes, as consumer spending is expected to rise.

Consumer spending is likely to reach $125 billion, up 10% year over year, this Thanksgiving weekend despite higher inflation and higher interest rates. This will drive the economy and stocks up.

To take advantage of the trend, investors can reap solid gains by investing in stocks in the industries that are likely to benefit the most this week. Some of these are Chipotle Mexican Grill, Dillard’s, American Airlines Group, Canadian National Railway and MakeMyTrip Ltd.

These stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a Growth Score of B or better. They have also witnessed positive earnings estimate revisions for the holiday quarter over the past 30 or 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Solid historical trends

While high inflation, the Fed’s aggressive rate hikes and recession fears have weighed heavily on the stock market, higher consumer spending should provide a boost to stocks this week. According to the Bespoke Investment Group, Thanksgiving week has produced modest gains for stocks dating back to 1945.

Researchers say that since then, the entire week of Thanksgiving has averaged a 60-basis-point gain for the S&P 500, with the best returns on the Wednesday before the holiday and Black Friday and the only decline on average on Monday at the start of the week.

Per researchers, the S&P 500 Index has gained an average of 0.54% during the week over the past 50 years, with 68% of its returns being positive.

Points of light

According to the National Retail Federation, a record 166.3 million people plan to shop from Thanksgiving Day to Cyber ​​Monday this year. This represents 8 million more people than last year and is the highest estimate since the NRF began tracking this data in 2017.

Americans will spend 125 billion dollars, an increase of 10 percent from last year. About 89% of consumers expect to shop in the period beginning Thanksgiving Day and ending Cyber ​​Monday, despite concerns about inflation and rising interest rates.

Black Friday continues to be the most popular shopping day, with 69% planning to shop, followed by 38% on Cyber ​​Monday. Among the 114.9 million Black Friday shoppers, 67% say they expect to go to stores, up from 64% in 2021.

Online searches (43%) remain the most popular source of gift inspiration, followed by friends and family (35%), and in-store (31%). The top five gift categories that consumers plan to give are clothing (55%), followed by gift cards at 45%, toys at 37%, books/music/movies/video games at 33% and food/candy at 31%.

Travel service provider the American Automobile Association (AAA) expects 2022 to be the third busiest Thanksgiving travel season in the United States in the past two decades.

About 54.6 million people will travel 50 miles or more from home this Thanksgiving. This is up 1.5% from last year and represents 98% of pre-pandemic volumes. Of these, 49 million (up 0.4% from last year) will travel by car, 4.5 million (up 8%) will fly, and the remaining 1.4 million (up 23%) will travel by train, bus or cruise .

However, Americans are bracing for an expensive Thanksgiving this year, with double-digit percentage increases in the price of turkey, potatoes, stuffing, canned pumpkin and other staples. The average cost to serve 10 people for Thanksgiving is expected to be $64.05 (or less than $6.50 per person), up 20% from last year’s average of $53.31, according to the American Farm Bureau Federation’s annual Thanksgiving dinner price survey. Higher prices should benefit the restaurant businesses.

Shares for shower profits

Chipotle Mexican, together with its subsidiaries, operates fast-casual and fresh Mexican food restaurant chains. Chipotle restaurants offer free-range, hormone-free pork, natural chicken and other meat products prepared using traditional methods and served in a unique atmosphere. The company has a market value of 41.6 billion dollars.

Chipotle Mexican saw solid earnings estimates revised to 38 cents last month for the holiday quarter. The stock has a Zacks Rank #2 and a Growth Score of A.

Dillard’s is a large department store chain with fashion clothing and home furnishings. It also sells its merchandise through the Internet at Stores are primarily located in the Southwest, Southeast, and Midwest regions of the United States.

Dillard’s has seen a solid earnings estimate revision of $2.37 for the current quarter in one month. With a market cap of $6.2 billion, DDS has a Zacks Rank #1 and a Growth Score of B.

American Airlines, through its subsidiaries, operates as a network airline. The company offers scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, DC, as well as through partner gateways in London, Madrid, Seattle/Tacoma, Sydney and Tokyo. AAL has a market capitalization of $9.1 billion.

American Airlines saw a solid earnings estimate revision of 41 cents over the past 30 days for the holiday quarter. It has a Zacks Rank #3 and a Growth Score of B.

Canadian National is engaged in railway and related transport activities. It serves as the largest rail network in Canada and is the only transcontinental network in North America. Canadian National saw positive earnings estimates revised three cents last month for the holiday quarter.

Canadian National has a market capitalization of $84.2 billion. It has a Zacks Rank #3 and a Growth Score of B.

MakeMyTrip is an online travel services company, offering travel products and solutions in India and USA. The company’s services and products include airline tickets, tailor-made holiday packages, hotel bookings, train tickets, bus tickets, car hire and arranging travel insurance. MakeMyTrip has witnessed a solid earnings estimate revision of 5 cents for the current quarter in the last 30 days.

With a market capitalization of $3 billion, MMYT has a Zacks Rank #2 and a Growth Score of A.

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Past results are no guarantee of future results. Inherent in any investment is the potential for loss. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investments in the securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date here and is subject to change without notice. Any views or opinions may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management for any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. This is not the return of actual portfolios of shares. The S&P 500 is an unmanaged index. Please visit for information on the performance numbers shown in this press release.

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