Summer just started.
But in a few weeks, it’ll be time to go back to school.
And for retailers it’ll be one of the top most important shopping seasons, aside from the winter holidays. 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.”
That being said, it may be a good time to invest in stocks with a history of running during the back to school spending season.
Going back to 2017, TGT ran from about $46 in July to a high of $55.90. In 2018, TGT ran from $66.36 to a high of $81. In 2019, TGT ran from about $79 to $109. 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 3.04%.
Walmart Inc. (WMT)
WMT had a similar pattern to TGT. Going back to 2017, the retailer has also pushed 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 $122.20.
WMT also carries a dividend yield of 1.83%.
Apple may be one of the top “must have” back to school stocks. For years, it’s rallied higher at the start of the school season. We don’t expect for 2022 to be any different. In fact, from an oversold price of about $139, we’d like to see the tech stock again challenge $180.
Apple also carries a dividend yield of 0.66% at the moment.