According to a report by the National Retail Federation, holiday spending is expected to increase 3.7%. What does that mean for investors? Which companies will benefit from the expected upswing in sales of electronics and gift cards? Is Best Buy (NYSE:BBY) a good buy, or is Circuit City (NYSE:CC) the way to go? What about Apple (NASDAQ:AAPL)? How will Wal-Mart (NYSE:WMT) and Costco (NASDAQ:COST) fare versus higher-end apparel retailers like Abercrombie & Fitch (NYSE:ANF)? In this installment of Fool Video, Motley Fool Online Managing Editor LouAnn DiCosmo talks holiday stocks with Motley Fool senior analyst Seth Jayson.

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Best Buy and Costco are recommendations in our Motley Fool Stock Advisor service. Best Buy is also recommended in Inside Value, as is Wal-Mart. You can try either market-beating service absolutely free for 30 days.

Seth doesn't own shares of any of the companies mentioned. Lou owns shares of Abercrombie & Fitch, but none of the others. The Motley Fool's disclosure policy loves a bargain.