Pay close attention to back to school stocks.
With kids heading back to school in just weeks, we anticipate a bump in related stocks, such as Target (TGT), Walmart (WMT), and Kohl’s (KSS), for example.
All with consumers expected to spend up to $41.5 billion for back to school gear, which should pass the $37.1 billion spent in 2021. Back to school college spending could hit $94 billion, about $20 billion more than last year, according to the National Retail Federation.
“Back-to-class shopping is one of the most important consumer shopping occasions of the year. Our research for 2023 shows American consumers are eager to jump start their back-to-school and college purchases early,” NRF President and CEO Matthew Shay said in a press release on the survey. “Retailers have been preparing for months to ensure they are well stocked with essential items that families and students need for the school year.”
That being the case, keep an eye on stocks like Target (TGT). Around July-August 2020, the stock exploded from about $120 to $187. Then, starting in June 2021, TGT ran from about $219 to $255. In 2022, around the same time, TGT ran from about $135 to $180. This year, after the stock gapped lower, we expect to see a similar move.
Walmart, Amazon, and Kohl’s saw similar moves for each of those years, too.
In short, take full advantage of the back to school trend.