Back_to_School

The market’s been bruised, battered, bloodied and beaten up badly over the past month. The S&P 500 Index is down over 14% since its July peak, making this one gigantic bummer summer for the bulls. Now investors are looking anywhere for some signs of good news, and perhaps a bit a reprieve from the overwhelmingly bearish sentiment we’ve seen on Wall Street. That respite from the downturn could come thanks to the seasonal back-to-school bounce in some of the nation’s most prominent retailers. (See my recent article on 5 Stocks to Survive a Wicked Downturn).

We’ve already seen some strong earnings results from a number of high-profile retailers, as second quarter profits have been outstanding in the face of a declining market. However, the selling in the broad market has served to put pressure on even the best of breed back-to-school retailers. But the market’s widespread selling could actually turn out to be good for astute back-to-school bargain shoppers, because getting in on the right stocks in the space now could pay off big time when the bulls return to Wall Street.

Here are five back-to-school stocks for a bloody market.

Debt Crisis Over – The “Real” Crisis is here (video)

The debt crisis may be over but it has quickly been replaced by the next crisis – an unexpected “double dip” recession with an unrecognized opportunity for you to profit.

This important short video by 30 year contrarian trader, Michael Shulman, lays out the harsh reality of a serious “double dip” recession and its incalculable negative impact on the financial systems and the stock market.

More importantly, he also reveals how a small group of traders are already deep into profits from their “double dip” uncertainty trades and how you can join them.

Learn How to Grab Your Double Dip Profits Here

 

 

Target

The cheap-chic retailer just posted better-than-expected second quarter earnings that came complete with a full-year forecast that topped even the most optimistic analyst’s opinion. Target Corp. (TGT) said it expects full-year profits to range from $4.15 to $4.30 per share, while analysts are looking for just $4.14 per share. Target’s full-year profit target could hit the bullseye if the company has a good back-to-school buying season. As you can see here in the 12-month chart of TGT, the stock took a tumble in early August, even breaking below the 50-day moving average. Those shares now are back above that mark, and they appear headed toward the 200-day average at $51.75. Good August and September sales could be the catalyst this retailer needs to build on its current rally.

 

Staples

The office retailer sells plenty of back-to-school supplies for the kids, including paper, backpacks, electronics, pens, etc. Of course, they’re also the leading retailer for the small business and home office customer. Staples, Inc. (SPLS) also recently posted better-than-expected second quarter earnings that included a boost in its full-year outlook.

The company said it now expects full-year earnings to range from $1.42 to $1.48 per share, which is up nicely from its prior outlook for EPS of $1.35 to $1.45. The chart here of SPLS shows a stock that’s taken a big hit since May. It also shows a beaten-down retailer coming up off the canvas just in time for a back-to-school rally.

 

Nordstrom

Upscale apparel retailer Nordstrom, Inc. (JWN) has always had a strong appeal for the more affluent shopper, and these days the more affluent back-to-school shoppers are going to be the ones with enough money to actually spend on looking good for class. Last week, Nordstrom posted strong second-quarter earnings that beat Wall Street expectations. The stock spiked on the news; however, shares are back down this week due in large part to the wider selling bias in the market. If we see the broader market stabilize soon, JWN shares will look like a big bargain here under $38—especially if back-to-school sales are robust.

 

Kohl’s

Mid-range department store Kohl’s Corp. (KSS) sells a lot of back-to-school clothes, shoes, jackets, etc. for kids and adults alike. The company’s also sold a lot of merchandise in the second quarter, as profits rose 17% from the same quarter a year ago. Like Target and Staples, Kohl’s easily bested consensus estimates, and it also raised its full-year profit outlook. The company said full-year 2011 earnings will be in the range of $4.45 to $4.60 per share, which is up nicely from its prior estimate of $4.25 to $4.40. As you can see in the chart here of KSS, the stock cratered in early August along with much of the market. Shares got a nice bounce on the earnings news, but since then the rally has stalled. Here again, a good back-to-school season could bode well for third-quarter profits, and for the stock. That means owning shares here at the $45 level could be a well-timed move.

 

Amazon.com

These days, a big portion of back-to-school shopping is done on the internet, and that means it’s a very busy time of year for online retailer Amazon.com (AMZN). The company already is one of the most profitable entities around, and in July they proved that with a second-quarter earnings that included its highest level of revenue growth in a decade. Amazon did say that it expects to report lower-than-expected operating profit in the coming quarter, but that’s because it plans to spend some capital on expansion. The chart here of AMZN shows a stock that’s been beaten up pretty badly in August. Shares now are below both the 50- and 200-day moving averages. Buying into this earning’s powerhouse near the $180 mark could allow you to book some very big profits in the months ahead.

Debt Crisis Over – The “Real” Crisis is here (video)

The debt crisis may be over but it has quickly been replaced by the next crisis – an unexpected “double dip” recession with an unrecognized opportunity for you to profit.

This important short video by 30 year contrarian trader, Michael Shulman, lays out the harsh reality of a serious “double dip” recession and its incalculable negative impact on the financial systems and the stock market. 

More importantly, he also reveals how a small group of traders are already deep into profits from their “double dip” uncertainty trades and how you can join them. 

Learn How to Grab Your Double Dip Profits Here

 

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