x
Investment Opportunities

6 Back-to-School Stocks to Add to Your Shopping List

6 Back-to-School Stocks to Add to Your Shopping List
  • PublishedSeptember 9, 2021

Many stocks are positioned to benefit from students returning to school. Back-to-school season will help to recover the retail industry as well as boost technology stocks. It’s currently the second-most important shopping season for retailers. The first one being the winter holiday season. While picking up school supplies for kids or dorm room essentials for college students, consider these stocks for your shopping list.

The best back-to-school stocks put the students and teachers first

Top Back-to-School Stocks to Invest In

Logitech International S.A. (Nasdaq: LOGI)

In this new school-reopening world we live in, some schools are fully back in person, some are hybrid, and others are 100% remote. Times have definitely changed. A lot of students are now required to buy a webcam. And with remote learning comes new equipment. One of the top makers of back-to-school webcams is a company called Logitech. Bracken Darrell, President and CEO, made a statement explaining that the company is currently “working like crazy to make sure they have enough products, especially for colleges and education of all levels.”

The leader in EdTech announced the expansion of its enterprise business offerings to include individual work setup solutions. This is in addition to its already existing industry-leading meeting room video conferencing technologies. Logitech is constantly looking at ways to improve and enhance the overall employee and student experience.

The expansion of its offerings includes Logi Bolt. The new high-performance, secure wireless technology providing a solution to key imperatives for enterprise IT. Logitech is actively working to meet today’s evolving business needs. And this secure wireless connection, robust wireless signal, and cross-platform compatibility for mice and keyboards is just one of the ways it’s accomplishing those needs.

According to company executives, Logitech’s sales rose 76% to $5.25 billion. Sales are up from $792 million the previous year. In a recent statement, it’s non-GAAP earnings per share rose 199% to $6.42, up from just $2.15 last year. Logitech has reported excellent financial performance. Bracken Darrell recently stated that Fiscal Year 2021 has been the company’s best year yet. With remote and hybrid learning being at the forefront of this year’s back-to-school environment, Logitech will only continue to succeed and grow. So keep your eye on Logitech when considering back-to-school stocks.

Walmart (NYSE: WMT)

When shopping for back-to-school supplies, Walmart is at the top of everyone’s list. It has every essential item a student will need. In May, the company announced its Q1 revenue of $138.3 billion. This is a $3.7 billion increasefrom the prior year. Last year the company reported $134.62 billion in Q1 revenue. That’s a huge increase… it even exceeded Wall Street’s predictions of $131.97 billion. And net income rose to $2.73 billion, up from $3.99 billion the previous year. Walmart came in at $559 billion in fiscal 2021.

Throughout the COVID-19 pandemic and more recently, rising concerns of the Delta Variant, Walmart has continued to perform. Customers were more inclined to shop online during the height of the pandemic but as companies start to reopen and mandates are being lifted, people are feeling more comfortable shopping in-store. Customers are picking up school supplies, bicycles, athletic gear, and just about anything else they need from their nearest Walmart.

The stock has continued to beat analyst expectations and is a name worth adding to your back-to-school stocks shopping list. Its online shopping access and online groceries are what make it a strong stock through thick and thin, all year round. Whether customers continue to shop online or in-store, Walmart is set to benefit.

Levi Strauss & Co. (NYSE: LEVI)

Levi, the worldwide known clothing brand, could make a solid addition to your back-to-school stocks portfolio. The popular jean giant took a hit during the height of the COVID-19 pandemic but has since seen positive returns. The company announced Q2 earnings reporting net revenues of $1.3 billion, up 156% from last year. Levi closed its doors in all areas affected by COVID-19. 17% of its stores were closed during the quarter but 92% of its stores are currently open.

The company has done a fantastic job capitalizing on denim trends. Fashion is constantly changing and evolving. The new fashion trend is what many are calling “comfy casual,” definitely a transition from the formal attire many considered to be in style not too long ago. Levi spots these trends and continues to shift and cater to what current and potential shoppers are looking for. Chip Bergh, President and CEO, recently stated that it will be focusing on “emerging stronger with their strategic priorities of leading with their enduring brand, accelerating their direct-to-consumer connections, and diversifying across categories, channels and geographies.”

Following its recent earnings report, Harmit Singh, CFO of Levi, expressed his satisfaction with the company’s results. Due to the significant increase in revenue in comparison to last year, the executive team is raising expectations for revenues and profits as they look forward. Dividends are now back to the pre-pandemic levels. As Levi carries on with expectations for revenues and profits, it’s going to be a name many investors will keep their eye on. With students going back to school, the retail industry is set to soar.

Apple Inc. (Nasdaq: APPL)

Today’s back to school shopping list is much different than it was a few years ago. Wearing the best-looking clothing and holding the hottest new gadgets are all the rage these days. Smartphones, tablets, and laptops have become the new fad amongst today’s youth. No matter where you turn, you’ll see a teenager holding a phone, taking selfies or listening to music.

With students going back to school, whether that be remote or in person, technology is an essential must-have on many students lists and Apple is ready to provide them with the best gadgets. Apple is definitely a name you’ll want to add to your list of back-to-school stocks, and here’s why…

In addition to back to school shopping, Apple stock is set to pop ahead of the iPhone 13 reveal. In addition to the new reveal, the iPhone 6 and 6 Plus are likely to go down in price. Apple has historically cut the price on previous years’ models in an effort to stimulate demand for older products, while also drawing attention to newer products. This decrease in price has boosted iPhone sales in the past.

Apple’s market cap is currently $2.6 trillion. It announced its Q3 results and shared its June quarter record revenue of $81.4 billion, up 36% year-over-year. Apple spent the last year creating new products with the main focus on connecting people. Connecting people through technology has never been more important. Apple’s CEO, Tim Cook, stated that they’ve “generated $21 billion of operating cash flow and continued to make significant investments to support their long-term growth plans.” With the company’s continued growth and immense success, it’s no wonder why investors favor this tech giant.

Crocs, Inc. (Nasdaq: CROX)

Crocs is a leader in the Footwear & Accessories industry. It’s always stepping up its game, coming out with new styles and fashion collections. When people think of crocs they think of the colored foam clogs that were all the rage in 2007. Even though that’s still the company’s most popular style shoe, it has footwear for every occasion. With school back in session, footwear is often always at the top of the list. Students want the hottest new shoes and crocs have something for everyone.

While every other company seemed to suffer in 2020, Crocs sales rose by 12% totaling $1.38 billion. Last quarter’s revenue grew 93% year over year, which demonstrated the desire for ultra-comfortable footwear that’s in place right now. The success Crocs experienced during a global pandemic is one of many reasons why investors believe it to be one of the best back-to-school stocks. Crocs is a COVID-19-era trend that will continue post-pandemic. Its constant innovation and creative marketing tactics should help it sidestep becoming the “has-been” of footwear it was all but labeled in 2008.

Crocs biggest fashion collaborations include Diplo, Post Malone, and Justin Bieber. These collaborations have been a huge contribution to sales. The company is certainly not known for its high-fashion footwear. However, once a beloved celebrity puts on a pair of the colored foam clogs, suddenly everyone wants a pair. According to the foam clog brand, it estimates revenue growth between 20% and 25% for 2021. The stock has increased 260% over the past year. Crocs has lots of growth potential and is constantly rolling out new styles.

Target Corporation (NYSE: TGT)

This retail giant has proven once again that it can withstand tough times. Target has continued to adapt to our changing environment. The back-to-school shopping season has done nothing but benefit Target. It’s not only benefiting from back-to-school shopping, it’s one of the top retailers for college students as well. Target is well-positioned to deliver another outstanding earnings report.

According to its Q2 earnings report, sales increased by 8.9% along with an increase of 12.7% in the number of transactions. Even during the height of the pandemic, customers stocked up on essentials which increased this percentage to 18.8%. According to Targets Chairman and CEO, Brian Cornell, backpacks, lunch boxes, and school uniforms are on the top of back-to-school lists. The company is seeing a strong start, which will only continue as it moves into the third quarter. Cornell believes it’s “going to be a really robust back to school and back to college season.”

Target is more than ready to appease its customers as the holiday season approaches. It’s set to add more than 100 Disney shops to its stores. These types of partnerships are what assist in the company’s growth and increase in revenue. Target is constantly working on creating new ways to retain customers. It has mastered the customer experience and knows what its buyers want. Shares have already risen 43% this year, beating analyst’s earnings expectations. The company saw a much stronger back-to-school season than it was expecting, making it a great name to add to your back-to-school stocks list.

Shopping Season for Back-to-School Stocks

Yes, kids are going back to school and workers are going back to the office, but remote learning products are now here to stay. This makes a strong case for back-to-school stocks with plays like Logitech and Apple. In terms of remote offices, there are about 50 million conference rooms around the globe and of those, less than 10% are equipped with video conferencing equipment. This trend is just getting started, and it’s here to stay.

With back-to-school season in session, it’s time for the retail industry to shine. Walmart, Levi, Crocs, and Target are among the top stocks set to benefit from this wave of eager students ready to up their wardrobe game. It’s always a challenge knowing what will benefit you financially. The stock market is anything but consistent and lucky for you, you have the opportunity to get expert advice from two of the best in the business.

If you want advice on how to navigate the market, what stocks you should have on your radar, and tips on how to become an expert trader… join Trade of the Day right now for FREE. This FREE e-letter will get you up to speed on everything you need to know about the stock market. Bryan Bottarelli and Karim Rahemtulla have been studying the markets for years and are here to help you succeed alongside them. They’ve written about back-to-school stocks before and will continue to do so. You can sign up below!

Written By
JoEllen Laun