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Actionable news in PRTY: Party City Holdco Inc,

Even Though Grandma Had No Trick-Or-Treaters Party City Is Still A Buy

Party City (NYSE:PRTY) stock had been a minor disappointment for me since I purchased it at $16.30. My losses were erased on Tuesday as a chartist on CNBC recommended it. Party City's stock has low volume and no direction, so any recommendation like this can impact the stock. This low volume should increase when the company reports next week.

The results it will reporting do not include Halloween, so they aren't what will move the stock. The commentary/guidance on Halloween sales will be what impacts the stock after earnings and for the next few months. I'm not certain about how much clarity management will give on Halloween sales. Since the report is two weeks after Halloween, I'm assuming they'll be able to give us some color on how well the firm did. This article explains my most recent thoughts on the stock and what I expect for the Halloween season's sales.

As I have mentioned in past articles, Party City should be resistant to Amazon (NASDAQ:AMZN) because customers tend to buy costumes at the last minute. This is anecdotal evidence based on my own personal experiences. I also spoke to the VP of Investor Relations at Party City who confirmed this customer habit.

As you can see from the chart, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) searches for "Halloween costumes" increase very quickly during the few days leading up to Halloween. Even on Wednesday, October 28th the search volume was only 57% of the volume on the 31st. If you are looking for a costume 3 days before Halloween, it would make more sense to just go to your neighborhood Halloween store instead of ordering it on Amazon where you would have to hope it comes in the mail on time.

Pop-up Halloween stores are another antidote to online sales. With Party City's 300+ Halloween City pop-up stores, customers get to have a party store in their area just when they need...


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