With Labor Day coming up this weekend, the summer is nearing its end to the dismay of many. However, it's not all bad. Students are returning to mostly in person classes once again and most importantly, grabbing a Pumpkin Spice Latte (PSL for short because everything needs an abbreviation in today’s society) on the way. And what’s even better than a Pumpkin Spice Latte? A free PSL of course, paid for by diligent investing in the company that produces that sweet delicious beverage.
Okay that’s not actually how investing works, the money for that Latte is still coming out of your wallet. But investing in firms that you believe will continue to grow and/or provide many of your most used goods and services is a great way to make that (virtual) wallet larger. So, with that in mind, what are the stocks to bet on this Fall season when you're not too busy drinking apple cider by day and “celebrating” Oktoberfest by night.
Starbucks vs Dunkin
Dunkin Donuts (formerly, "DNKN") might rule New England but sadly Starbucks (SBUX) dominates the “coffee” (milk and sugar with some coffee sprinkled in) game right now. Whether it's a Pumpkin Spice Latte or Unicorn Frappuccino, Starbucks is the go to place and there’s little reason to believe that’s going to change anytime soon. Starbs saw its revenue dip during the pandemic but has recovered extremely well with everyone excited to return to their favorite coffee chain as its most recent quarter showed revenue up 77% compared to its year ago quarter (net income rose 270%).
Starbucks has a cult-like following and that cult is massive. Meanwhile, Dunkin has its own diehards in the northeast but has struggled to reach the same success nationally that Starbucks has achieved. Either choice is a good option for betting on coffee chains to grow as the need for coffee isn’t going anywhere and both offer more tea options now as it gains in popularity.
Prost!
Starting a cool autumn day with a Pumpkin Spice Latte is pretty sweet but relaxing with a little Oktoberfest bier is the best way to end it. There are many breweries who produce their own Oktoberfest themed beers around this time of year with some big names being Boston Beer Company (SAM), Anheuser-Busch (BUD), and Constellation Brands (STZ). With so many microbreweries popping up now, the big guys have finally been stepping up and releasing more limited edition bottles for beer drinkers. And one thing investors should take note of, there are A LOT of beer drinkers nationally and around the world. Humans have been going against their better judgement and popping open a cold one for over 6,000 years (yes possibly before cultivating grain for bread, we grew grain for beer). So take your pick, all of the big guys make some solid Oktoberfest marzen and the demand for beer has sustained for 6,000 years and is just getting started.
Outdoor Adventures
Hiking and camping can be a year round adventure but nothing beats the autumn season for a good walk in nature. Summer is too hot, winter’s too cold, and spring is cool but doesn’t have the leaves that the fall season offers. When braving the outdoors for extended periods, there are plenty of brands that offer useful products. Yeti Holdings (YETI) might be perhaps the best (and most expensive) for all things outdoor such as tumblers, coolers, bags, and other gear. There are countless activities that can be done outside in the Fall for those who want to explore nature during its objectively best season.
One of those activities isn’t quite as natural though. Nothing says small town autumn fun like a family adventure through the local corn maze! Whether it's a corn maze or apple picking, there are plenty of fun little traditions to do this fall that weren’t as readily available last year during the pandemic. One reason why corn is so great to use for a maze is because we literally have corn coming out of our… ears. The U.S. produces so much corn (over 95% of total feed grain production) and consumes so many corn products that we literally don’t know what to do with it. The biggest of these is Archer-Daniels (ADM). With corn being the product U.S. citizens consume the most and Archer-Daniels dominating the market for it, probably not a bad idea to bet on them as the country doesn’t seem to be transitioning away from corn yet and still offers massive subsidies to corn farmers.
Wrapping Up
There you have it, a few stocks guaranteed not to fall this autumn (unless their stock price drops below where it is now for literally any number of reasons). Stop just consuming lattes, beer, and corn and start profiting off those companies that have happily taken your money for years every fall season.
