Best and Worst Stocks After the Black Friday Sales Surge

There were many folks, including myself , who expressed concern about whether
consumer spending will hold up this holiday season. But after very strong Black
Friday numbers, it might be time for investors to take a serious look at some of
the big retail stocks and electronics manufacturers that could benefit from a
strong finish to 2011. According to the National Retail Federation, shoppers
spent a record $52.4 billion across the long Thanksgiving holiday weekend up an
impressive 16.4% from 2010. Even more impressive was a stunning 39% increase in
online Thanksgiving spending a trend that hints Cyber Monday sales today could
blow the doors off, too. Of course, that doesn't mean everyone is doing well.
It's still a very difficult environment out there in the wake of the financial
crisis and amid persistently high unemployment, so investors should be wary.
Many folks doubt whether this trend is sustainable and think this is just a very
good start to the season that will lose momentum. So which companies are the
winners from this holiday spending trend, and which stocks are set to fall
behind? Let's take a look: Biggest Loser: Sears What Best Buy (NYSE: BBY ) and
others gained, other retailers naturally had to lose. But one merchant
perpetually getting squeezed out by the competition is Sears Holdings (NASDAQ:
SHLD ), which operates not just the namesake department stores but also 1,300
Kmart discount stores nationwide. Additionally, Sears produces Kenmore
appliances which, thanks to big competition from BBY and others, aren't
moving well during regular shopping hours, let alone during the holiday rush. To
top it off, serious cash flow problems have resulted in what can only be called
as neglect for many run-down Sears locations turning off shoppers in what
already is a bitter fight for every nickel consumers have to spend these days.
Even if shoppers continue to open their wallets like this for many months to
come, it's doubtful Sears will capitalize on the trend in the same way other
retailers will. Also Disappointing: Apple True, sales at branded Apple Inc.
(NASDAQ: AAPL ) retail locations are not the bread and butter of this gadget
maker. True, it's online sales were strong again this Black Friday weekend,
with Apple.com seeing double-digit growth over last year. But with the best
retail sales per square foot and Apple's website now ranking as the No. 3
online merchant in the U.S. , you would think there would be tremendous
potential for a Black Friday boom. Just think what the company could do with its
"insanely great" products, deep discounts and loyal customers!