By: Katie Gomez

As Americans, it’s easy to see why we are so enamored with the sights of fireworks on our nation’s birthday—they stimulate the same sense of immediate gratification that money offers. The visual stimulation fireworks provide is akin to that of money: both appear suddenly, burn bright, and eventually fade away. We are always seeking a quick fix to fulfill that need for instant gratification. As we approach the Fourth of July, people should keep an eye on these four stocks that could potentially spark fireworks in the market and rain down money.

When considering hot consumer stocks in the summer months, look at the core of American culture—nostalgic brands and companies that evoke the patriotic spirit this holiday represents. Therefore, the following stocks are popular U.S.-based companies, varying in share price and with low volatility, on which to place your bets. Ironically, the seemingly dull or old-school companies might just be the ones to watch, causing fireworks this July.

Stock #1: The Walt Disney Company (D.I.S.)

Walt Disney is a name you want to invest in during this nostalgic time. The image of a firework shooting over a castle, how much more wholesome can you get? The Walt Disney Company is a renowned entertainment and media conglomerate with theme parks, resorts, cruise lines, media networks, and filmed entertainment. With Disney sitting pretty at around $100 a share now, it doesn’t cost much for a slice of the happiest place on earth. 

Disney is set to release its quarterly earnings report in August, which could provide insight into the company’s recovery from the pandemic. Strong earnings results could boost investor confidence and drive stock prices higher. They also have new summer releases like the Inside Out sequel. The success of new movie releases could positively impact the company’s filmed entertainment division and overall financial performance. Additionally, with schools nationwide, consumers are likely to spend more on entertainment and leisure activities during the Fourth of July holiday and throughout the summer. What kid wouldn’t want to watch the fireworks from the happiest place on earth? 

Stock #2: Booking Holdings (BKNG) 

Those not hosting in their backyard or visiting their neighbors’ houses this Fourth of July might choose to celebrate elsewhere, taking advantage of a four-day weekend with family or friends. That said, traders would be prudent to follow popular travel agencies that are doing well, starting with one of the first sights that pop up when you Google travel: Booking Holdings (BKNG). 

Booking Holdings has become the leader of online travel agency platforms as one of the largest travel websites in the world, with Booking.com, Kayak, Open Table, and Priceline under its name. Investing in BKNG means investing in the best sites for travelers looking to book accommodations, from hotels to airlines to car rentals. At more than $3,770 per share, it is one of the most expensive stocks on the market (but for good reason), as analysts expect its 12-month average price only to increase exponentially. 

Stock #3: Tyson Foods (NYSE: T.S.N.)

Tyson Foods (NYSE: T.S.N.) is a prominent player in the meat industry, and it may be a suitable choice for investors looking to capitalize on the continued consumption of meat products in the United States, especially during the Fourth of July holiday. As of June 2024, Tyson Foods stock price stands strong at $54-55 with slight daily changes.

The Fourth of July inspires many Americans to gather for barbecues and celebrations, often featuring hot dogs, burgers, and chicken. As a leading processor and distributor of these products, Tyson Foods is well-positioned to benefit from the increased demand during this holiday period. The company’s diverse product portfolio, which includes popular brands like Tyson, Jimmy Dean, and Hillshire Farm, caters to a wide range of consumer preferences and price points.

The company’s extensive distribution network and strong relationships with retailers and food service providers ensure its products are readily available to consumers during this peak consumption period. Additionally, Tyson Foods’ investments in product innovation and marketing initiatives to capture the holiday spirit may further boost sales and brand recognition.

Stock #4: A.B. InBev

If there is one thing that screams American celebration, it’s beer. A.B. InBev is the world’s largest beer company; it was formed through the merger of Anheuser-Busch and InBev in 2008 and the acquisition of SABMiller in 2016- owning hundreds of beers brands such as Budweiser, Stella Arrtois, Beck’sBeck’s, and a variety of other craft beers in the U.S. AB InBev has been trading around $60-62  range. As Americans gear up for the Fourth of July festivities, the demand for beer is expected to soar, providing a potential boost to A.B. InBev’sInBev’s sales and revenue. 

On the 4th of July, friends and family come together to celebrate the nation’s independence, often accompanied by the classic combination of beer and barbecue. As one of the most iconic American beer brands, Budweiser, an A.B. InBev product, is likely to be a staple at many of these gatherings. The company’s extensive distribution network and strong brand recognition ensure its products are easily accessible to consumers during this peak consumption period.

Moreover, AB InBev’s diverse range of brands caters to various consumer preferences, from the classic American lager to the more niche craft beer offerings. This adaptability positions the company well to capitalize on the growing trend of craft beer consumption, which has gained significant traction in recent years. As Americans become more adventurous in their beer choices, A.B. InBev’s craft beer portfolio offers investors exposure to this lucrative market segment.

While AB InBev may not be the most volatile or high-growth stock, its stability and consistent performance make it a reliable (value stock) choice for investors looking to weather market fluctuations. The summer months, particularly the 4th of July holiday, present a unique opportunity for the company to showcase its brands and benefit from increased beer consumption. As Americans raise their glasses to toast the nation’s independence, A.B. InBev investors can find comfort knowing they have a stake in a company that embodies the spirit of celebration and togetherness.

If you haven’t noticed the trend of these American stocks to watch, they all revolve around family and nostalgia (Disney), B.B.Q. Cookouts (Tyson), parties and drinking (A.B. InBev), and travel (BKNG) all around this momentous holiday celebrating the four frontiers that make up the great U.S.A. 

Each of these stocks presents unique opportunities for investors to benefit from the increased demand for consumer goods, entertainment, meat products, and beer during this patriotic season. However, investors should keep in mind that while the Fourth of July holiday may provide a short-term boost to these sales and interest in travel, food, beverage, and media sectors around the holiday, the company’s long-term performance will be influenced by broader industry trends, consumer preferences, and its ability to manage costs and maintain efficient operations, nevertheless, for those seeking exposure to the meat industry and potential benefits from holiday-related consumption. 

While no investment is without risk, these companies have the potential to deliver solid returns and add some sparkle to your financial future. Don’t just take my word for it. Do your research in similar sectors and see which stocks ignite your spark to invest in this Fourth of July season. Visit Trade Ideas today to help you find which stocks match your individual goals to make some sparks fly in your stock trading portfolio this summer.