Halloween has been practiced in the United States since the 1800s, brought over by the Celts of Ireland and Great Britain. It was originally called Samhain. Halloween is practiced in United States, England, Ireland, Scotland, Wales, Canada, and occasionally in Australia and New Zealand. Here are some stocks which may benefit from the holiday, but beware; there may be more tricks than treats.

One of the popular activities of teenagers on Halloween is watching a horror movie, either in a theater or renting a video or DVD. One of the leading studios of scary movies is Lions Gate Entertainment (LGF), which has made such films as American Psycho, Ginger Snaps, Route 666, The Devil's Rejects, House of the Dead 2, Saw III, See No Evil, Hostel: Part II, and many, many more. Lionsgate has a forward P/E of 32.39, and reported a 15.2% increase in revenues for the latest reported quarter.

Of course, the big beneficiaries of Halloween are the candy companies. Hershey Foods (HSY) is a large chocolate and confectionery company made famous by its Hershey Bars. The stock has a P/E of 24.74, a PEG of 2.2, and a yield of 2.6%.

Cadbury Schweppes (CSG) is a London based confectionery and beverage company which was founded in 1783. The stock has a P/E of 23.27, a PEG of 3.05, and a yield of 2.6%.

William Wrigley Jr. Co. (WWY) not only makes chewing gum which it is famous for but also mints, candies, and other candy products. The stock has a P/E of 29.45, a PEG of 2.66, and a yield of 1.9%.

Rocky Mountain Chocolate Factory (RMCF) is a very low cap Colorado based company which makes and markets chocolate and candy. The stock has a P/E of 21.77 and a yield of 2.4%.

Tootsie Roll Industries (TR) makes all kinds of candy for trick-or-treaters including Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella's, Mason Dots, Mason Crows, Junior Mint, Charleston Chew, Sugar Daddys, and Sugar Babies. The stock has a P/E of 24.48 and a yield of 1.2%.

Costumes and decorations are available at discount stores such as Target (TGT) and Wal-Mart (WMT). Target has a P/E of 19.59, a PEG of 1.21, and a yield of 0.9%. Wal-Mart has a P/E of 14.89, a PEG of 1.17, and a yield of 2%.

Disclosure: Author does not own any of the above.

• Del Monte Foods Company F1Q09 (Qtr End 07/28/08) Earnings Call Transcript  »
• Conn’s, Inc. F2Q08 (Qtr End 07/31/08) Earnings Call Transcript  »
• Kirkland's, Inc. Q2 2008 Earnings Call Transcript  »
• Brown-Forman Corporation F1Q09 (Qtr End 07/31/08) Earnings Call Transcript  »
• Genesco, Inc. F2Q09 (Qtr End 08/02/2008) Earnings Call Transcript  »

Stockerblog

• Visit author's site
• Bio & more articles