Deidre Woollard, an investment analyst at The Motley Fool, joins a discussion about the staggering $100 billion expected in back-to-school spending. They reveal surprising brand preferences among interns and the potential impact of experiential spending on big box retailers. The conversation dives into the disruption of traditional homework help services by AI tools like chatbots. They also highlight key stocks benefitting from back-to-school trends, including insights on companies like Dick's Sporting Goods, Target, and Chipotle.
Electronics purchasing, especially among college students, is significant, with an average spend of $1,300 per person.
Companies like Dick's Sporting Goods and Target have positioned themselves well for the back-to-school season and are expected to benefit from the increased spending.
Deep dives
Back-to-school spending and trends
Back-to-school spending is expected to reach $41.5 billion, with an average of $900 spent per person. Electronics purchasing, especially among college students, is significant, with an average spend of $1,300 per person. Back-to-school trends have been starting earlier each year, and certain brands like Mercedes and Instagram are popular among college interns.
High school back-to-school stock picks
Two companies that could benefit from the return to high school are Dick's Sporting Goods and Target. Dick's Sporting Goods has seen steady growth and is venturing into experiential retail to enhance sales. Target is synonymous with back-to-school shopping and has a strong physical and e-commerce presence, utilizing both to drive sales.
College back-to-school stock picks
For college students, ELF Cosmetics and Chipotle are potential companies to watch. ELF Cosmetics has experienced impressive growth in the beauty industry, and the trend of self-care and skincare presents opportunities. Chipotle, while facing stiff valuation concerns, relies on the success of college towns for their sales and has a strong reputation in that demographic.
Kids are expensive. Consumers are estimated to spend more than $100 billion on back-to-school shopping this year, according to the National Retail Federation.
Deidre Woollard, Mary Long, and Ricky Mulvey got together to talk about companies that could ride the tailwinds of back-to-school season. They discuss:
Surprises from a survey revealing the brand preferences of college interns
Why “experiential” spending could be the future, or failure, of one big-box sports retailer
If chatbots killed the homework help business
And six stocks that play to back-to-school trends
Tickers discussed: MBG.DE, TSLA, META, GOOGL, UBER, LYFT, SPOT, AAPL, PYPL, DKS, TGT, SNAP, ELF, CMG, CHGG Host: Mary Long Guest: Deidre Woollard, Ricky Mulvey Engineers: Tim Sparks, Rick Engdahl