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A+ Stocks for Back to School
Ya, it's a bummer kid, but here's the up side; it's time for Mom and Dad to spend a little money on you ! And college kids going back to school ready to hit the books and party w/ there friends at Starbucks & Chipotle Grill .
Time For Some New Gear
Make sure you communicate to your parents that your list of necessities is both long and distinguished. You gotta get some new shirts, couple pairs of pants, definitely a new pair of shoes. Oh ya, don't forget the books, there's going to be studying involved in this process too; you're probably going to need some notebooks, a calculator, a couple packs of pens, maybe a new backpack.
When you add it all up we are talking about a serious outlay, where a middle-class family can easily spend $500 a piece on Timmy and Suzy to make sure they go back to school in style. Throw a laptop in there anywhere and tack on another $800 to $1000. So as you can see, this game of back to school is serious business for the retailers, and after we take a look at the numbers, it's easy to see why.
Back to School Is Serious Business Back to school is the second largest revenue pull for the sector, right behind the almighty holidays, with revenue this year expected to top $55 billion, a 16% increase from 2009. But even though sales volumes are expected to rise, the competition will be fierce as the group continues to battle a weak consumer, the top end of a margin cycle and each other with some very highly publicized pricing wars between a number of big-name players. So with that in mind, here are four retailers that look well positioned to cash in on the annual spending bonanza known as "Back to School."
4 Back to School Stocks
Target Inc. (NYSE: TGT - News) is a back to school cornucopia, carrying everything from pencils and pens to pants and shirts that make it a potential one-stop shop for even the most demanding back to school shoppers. The company has a solid 12% average earnings surprise over the last four quarters to go along with its discounted P/E of 13X against its peers 17X.
Bed Bath and Beyond (NasdaqGS: BBBY - News) is a great place for college-bound students to pick up big savings on new sheets and towels. The company has also been hot over the last year, with its share price more than doubling from its 2009 low. The next-year estimate is bullish, projecting 13% earnings growth.
Apple Inc. (NasdaqGS: AAPL - News) is probably the hottest company on the Street right now, posting unbelievable Q2 results in early July that contained a 14% earnings surprise on a 61% increase in revenue. This is the go-to company for young consumer electronics aficionados with its iPhone, iPod and iPad and Mac books topping the charts of popular devices for the back to school crowd.
Office Max (NYSE: OMX - News) is another back to school hot spot, providing both schools and students alike an opportunity to load up on supplies at discounted prices. The company has recently seen a big turn in its earnings profile, rebounding from a Q4 loss with strong first and second quarter performances. That trend is expected to continue, with the next-year estimate projecting 40% earnings growth.
Chipotle Mexican Grill, Inc. (CMG) Is a great back to school stock , after a long day going school shopping or going out for lunch during school , there is no better place to eat fresh and organic tacos for a great hip place than CMG............. W/ growth of 45% and making hand over fist , Buy,Buy,Buy ................
Starbucks Corp. (SBUX. Have a coffee or a danish before you go shopping early in the morning or winding down late at night doing homework on WiFi w/ friends.
Thoughts ??????
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