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The ultimate Thanksgiving portfolio with costs on the rise

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A Thanksgiving with inflation front and center creates an opportunity for some companies to stand out as shoppers hunt for bargains, according to Bank of America. Bank of America analyst Bryan Spillane said in a note to clients Monday that promotions and discounts will be a key theme this holiday season. The note cited an estimate from the American Farm Bureau that the Thanksgiving cost index is up 20.1% year over year. Spillane identified the stocks that are most exposed to Thanksgiving and how those companies can get ahead. “With promotions becoming more of a focus on consumer minds as they plan for holiday shopping, the typical uptick of promotions in November and December can be expected and benefit companies that provide more promotional offerings over the holidays,” Spillane wrote. The buy-rated stocks on Bank of America’s list are Kraft Heinz and winemaker Duckhorn Portfolio . Kraft Heinz, like many other food product stocks, has proven resilient this year, climbing about 7%. That outperformance has come despite most of Wall Street being skeptical of Kraft Heinz. According to FactSet, more than 50% of analysts have had a neutral or sell rating on the stock all throughout 2022. Duckhorn Portfolio, meanwhile, has fallen more than 30% year to date, and alcohol is one area where many consumers plan to cut costs over the holidays, according to a Morning Consult survey cited by Bank of America. However, Duckhorn has a buy rating from 78% of analysts, according to FactSet. Other names on the list with high exposure to Thanksgiving are Conagra Brands , General Mills and Hormel Foods . General Mills has already been a big winner for investors this year, climbing 22% even during a bear market. Conagra is also up in 2022. Hormel may be one of the most obvious Thanksgiving stocks due to its Jennie-O turkey products brand. However, the stock is trading above Bank of America’s $45 price target for the stock. — CNBC’s Michael Bloom contributed to this report.

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