Back to school stocks are racing higher.
All with total back to school spending expected to hit $74 billion this year from $71 billion in 2021, according to the National Retail Federation (NRF).
“Families consider back-to-school and college items as an essential category, and they are taking whatever steps they can, including cutting back on discretionary spending, shopping sales and buying store- or off-brand items to purchase what they need for the upcoming school year,” NRF CEO Matthew Shay said. “The back-to-school season is among the most significant shopping events for consumers and retailers alike, second only to the winter holiday season.”
Look at Walmart. (WMT), for example.
After bottoming out around $120, the stock is now up to $133.47. From here, if it can break above triple top resistance, it could challenge $137 next. Long-term, we’d like to see WMT refill its bearish gap around $150 a share.
Target (TGT) was just upgrade to overweight with a price target of $195 at Wells Fargo. Target’s selloff provides the opportunity to pick up “a proven share gainer into an under-appreciated earnings recovery at the right price,” said the firm, as noted by TheFly.com. Even JP Morgan just raised its price target on TGT to $190 from $180. Over the last few weeks, shares of TGT ran from about $150 to $173.51. From here, we’d like to see it refill its bearish gap around $210 a share, near-term.
Or, look at Amazon.com (AMZN), which gapped from $125 to $142.01. From here, we’d like to see the AMZN stock race back to $170. All on back to school and holiday shopping.