From Ian Cooper
In just weeks, school is back in session.
That means that it’s time to buy popular school stocks, such as Target (TGT), Walmart (WMT), and Apple (AAPL).
According to Morning Consult, “Since early May, the share of back-to-school shoppers planning to spend more than $500 on their children’s supplies this season has increased from 11% to 25%. Just 7% of parents doing back-to-school shopping for the previous school year planned to spend more than $500.”
Also, according to Deloitte:
“Back-to-school spending is expected to reach $28.1 billion, averaging $529 per student in households buying clothing, supplies, computers and electronics for children in grades K to 12. While spending is relatively flat from 2019, there is increased emphasis on technology-based learning tools, including resources to supplement the standard K-12 program. Spending on technology products (including personal computers, smartphones, tablets, wearables) is set to increase 28% over 2019. Consumers planning to purchase these items intend to spend an average of $488 on them.”
That being said, investors may want to consider these three oversold back-to-school stocks.
Target has a strong history of running ahead of the back to school season. In 2020, it ran from $116 to $173. In 2021, TGT ran from about $224 to $260. For 2022, after gapping from about $260 to $142.55, there’s hope the oversold retailer can produce another solid back to school win. TGT carries a dividend yield of 2.95%, and is still oversold at $146.40. Eventually, we’d like to see TGT refill its bearish gap around $210, with a good deal of patience.
Walmart Inc. (WMT)
WMT had a similar pattern to TGT. Going back to 2017, the retailer has jumped aggressively higher in back to school season. For the 2022 season, we’d like to see the WMT stock to initially refill its bearish gap around $150 from a current price of $125.45. WMT also carries a dividend yield of 1.79%.
Apple is a top back to school stock. With a strong history of rallying at the start of the school season, we don’t expect for 2022 to be any different. From its current price of $144.87, we’d like to see the tech stock again challenge $180. Apple also carries a dividend yield of 0.64%.