Definite FM. It is indeed a Halloween classic. You can say it's popular just due to nostalgia and that may be true, but that's part of what defines a classic. The movie was part of my childhood growing up in the 90s. I think the fact that the movie really feels like the 90s is part of its appeal. It's almost not October unless I watch it at least once.
It's worth noting that
filming for the sequel just started a couple days ago (set to be released next year). And yes, it will have Bette Midler, Kathy Najimy, and Sarah Jessica Parker. Otherwise, it almost certainly wouldn't even be worth considering watching.