The Four Stocks That Belong in Your Shopping Cart Right Now

This is the first back-to-school season where I’m not out there digging through every clothing aisle with my daughter or wrestling someone over a backpack for my youngest, who graduated from high school earlier this year.

I’m lucky to sit this one out as both of my kids head off to their respective colleges. And that means they’re now old enough to buy their own clothes, supplies, and gear.

But I certainly remember what it’s like preparing for the new school year, and my hat goes off to you for getting through it.

It’s also the time of year when retailers really start pushing their back-to-school sales even harder, according to the National Retail Federation. Retailers typically start their promotions in July, with some starting as early as June.

Now it still takes between three and four shopping trips over the span of a few weeks before kids are fully prepared for the first day of school…

And that’s exactly what these four back-to-school stocks are banking on…

These Four Stores Could Pay You Back for Your Back-to-School Shopping Bill

1. Staples, Inc. (NASDAQ: SPLS)

SPLS is one of the most well-known office supply chain stores in the U.S. and also has over 2,000 stores worldwide.

Now its second-quarter earnings met expectations, with a reported earnings per share of $0.12 and a reported $4.75 billion in revenue.

But today, it announced a newer and easier way for customers to shop… the Staples Easy System. This voice-recognition and text technology enables customers to place their orders easily and interact with customer service without ever needing to log in to the website  or even use a desktop computer.

What makes this service even more appealing to parents is that they can now take pictures of their own back-to-school lists and send directly to a staples associate to then provide the best product options for their needs. And to make things even easier, customers can pick their orders up at the store or have them shipped.

Below are just some of the many of the options trading opportunities my proprietary tools are showing for this stock over the next 30 days…

SPLS Chart

2. Target Corp. (NYSE: TGT)

TGT is a company I’m pretty sure you know very well. It’s the second-largest discount retail store in the country behind Wal-Mart.

And its popularity and success showed in its second-quarter earnings, with earnings coming in at $1.23 per share compared to the consensus estimate of $1.14. Now its reported revenue of $16.17 billion fell a little shy of the $16.21 consensus estimate. But the fact that it’s among the top (arguably THE top) shopping place for students of all ages year-round makes it even more promising.

Here’s what I see in the way profit opportunities for options traders over the next 30 days.

TGT Chart

3. PVH Corp. (NYSE: PVH)

PVH is considered to be more of an upscale retail apparel company. As the parent company of big brand names like, Calvin Klein, Tommy Hilfiger, and Heritage Brands, it’s no surprise that PVH stands to profit handsomely from the back-to-school shopping craze.

It’s already one of the highest-priced stocks in the retail apparel sector and has shown a solid uptrend this year since the lows back in January.

And PVH had strong earnings in the second quarter,  with a reported $1.47 earnings per share (11.4% higher than the the consensus estimates) and $1.93 billion in revenue.

Take a look at all of the options trading opportunities you can use to make money off of this stock…

PVH Chart

4. Soda Stream, Inc. (NASDAQ: SODA)

SODA manufactures home beverage carbonation systems that turn tap water into soda and sparkling water.

Now it may seem weird to include a soda manufacturing company on this list, but these are just a couple reaons why we can expect a pop higher in price as students head back to school…

Its earnings came out on August 2nd, and the results were better-than-expected. SODA reported earnings per share of $0.37, beating the consensus estimates by over 94%. And on the revenue side, the company saw a 17.2% growth, reporting $119.2 million in revenue for the  second quarter.

After giving away free beverage makers to angry owners of the discontinued, Kuerig Kold, back in June, SODA is also featured in Target’s back-to-school section.

Quarterly Earnings

Mark Your Calendar for September 15th…

On September 15th, the monthly retail sales report for August comes out. So keep in mind that the results could affect your trades for better or for worse.

Now as you get closer to this date, you might consider taking any gains you’ve made instead of giving them back because the retail sales numbers. Whether the report is good or bad, there’s still that chance of the markets doing the old, “buy the rumor, sell the news,” which means any retracement in share price will come out of the option’s premium.

So take get that money back you spent on clothes and school supplies…

And have a great weekend!

Good Trading,

Tom Gentile

18 Responses to “The Four Stocks That Belong in Your Shopping Cart Right Now”

  1. I can only comment on the stocks I highlighted in the article, but check for yourself and see what look best for your circumstance. Also when it comes to options, be sure to check the implied volatility of each as it may make sense to buy a simple call for some, or a spread for others. It really depends on the premiums…

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