Back-to-school season is under way as parents scramble to buy their children new clothing, gadgets and supplies. Those items don't grow on trees, so they have to buy them somewhere. And that somewhere is usually a major public company - a company you could own part of and profit from!
Related: Boost Back-To-School Savings With A Sales Tax Holiday
Which stocks stand to benefit most during back-to-school season?
Apparel: Macy's
According to CNBC, several analysts believe Macy's M will be a top destination for back-to-school shoppers. As one CNBC source noted, “Macy's is winning the game in all respects. Online, fashion, price ... and has no real direct competition in its space. It just keeps bringing in more and more product that appeals to the back-to-school shoppers from children's and teen to collegiate.”
Given that, according to Deloitte, 91 percent of back-to-school shoppers intend to purchase clothes this year, Macy's could perform rather well if CNBC is correct.
Macy's price target is around $54 versus its current price of under $48.
Big Box: Wal-Mart
According to Deloitte, the top three items to be purchased this year will be:
- School supplies
- Clothes
- Shoes
Wal-Mart WMT sells plenty of all three. It also sells electronics, furniture and anything else a student could possibly need.
And, according to Businessweek, Wal-Mart has the best prices by a wide-margin this season, which should bode well for the Bentonville, Arkansas-based retail giant. In a season in which consumers appear focused on thrift and 90 percent plan to shop at discount/value stores, Wal-Mart should emerge as the clear back-to-school winner among big box retailers.
Wal-Mart's price target is $82 versus a current price of just over $77.
Online Retail: Amazon, eBay
Deloitte notes 36 percent of back-to-school shoppers intend to shop online this season. That's a 16 percent jump from 2012.
Given that Amazon AMZN sells books, electronics and plenty of other school-related items at good prices, look for strong back-to-school sales from this Internet retail giant. eBay EBAY would be another worthwhile option to consider to boost your portfolio for the mentioned reasons. Shoppers can buy all their back-to-school items on the site, often at below-retail prices, which could benefit the company during this time of thrift-consciousness.
Amazon's mean price target is over $331 versus its current value of about $298 while eBay's is well over $63 versus its current price of just over $53.
Tech: Apple
Apple's AAPL devices remain wildly-popular. And, given the breakneck speed of the industry, back-to-school shoppers may be eager to replace their obsolete (six-month old) smartphones and other devices in time for the new school year. While Samsung has gained ground as a top-notch smartphone producer, it'll be a while before Apple loses significant popularity.
Apple has a price target of $523 versus the current price of around $455.
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