With summer winding down, kids are headed back to school—in droves.
The U.S. Education Department projects pre-kindergarten through 12th grade enrollment for the 2008-2009 school year to be at its highest level to date! With an expanding student body in mind, several stocks are poised to cash in on this season's back-to-school trends.
Before I start name-dropping stocks, I want to remind you that consumer spending is stuck in a downward rut. High food prices and expensive energy create a challenging environment for retailers, and the reality is not all of them have the grades to make the Dean's list.
So how can we separate the winners from the losers? It's simple! Run them through PortfolioGrader Pro, my FREE stock ranking tool, and find out which stocks make the grade. It's quick, it's easy, and it's absolutely free.
Which companies are prepped to profit from the consumer spending challenge?
Here are THREE safe-haven brands that consumers flock to when the going gets tough:
- Staples (SPLS). Grade: B. If you're a parent like I am, taking your kids into Staples can really burn a hole through your pocket! Not because the company's products are overpriced, but the kids want new pens, pencils, notebooks, binders, rulers, scissors, etc. Last year's supplies just don't cut it for them. Staples recently reported an 18% increase in second-quarter sales—that's up $1.4 billion over the same period last year!
- WalMart (WMT). Grade: A. The new school year just wouldn't be complete without a new wardrobe. With the economy as tough as it is, more consumers are looking for value—which bodes extremely well for retail-giant WalMart. "Save Money. Live Better" strikes a personal chord with shoppers, especially as they try to maximize the reach of their tight budgets. WalMart is a win-win stock—it gives kids more of what they want, and parents more of what they can afford.
- Apple (AAPL). Grade: A. If you think all students need this fall is a spiral notebook and a #2 pencil, think again. Topping school supply lists around the country—and the world—is the computer. Although Apple often falls second to PC-giants Dell (DELL) and IBM (IBM), the company shows no sign of slowing. Analysts project Apple to ship over three million Macs in the third quarter—that's 41% more than last year! The reason: Apple's back-to-school promo for college students that offers a free iPod with the purchase of a Mac computer.
So there you have it—three hot Back-to-School stocks you can cash in on before the season is out! But first, be sure to check your favorite stocks in PortfolioGrader Pro before adding them to your buy list. Remember, if a company doesn't make the grade, you're not getting the loudest bang for your buck.
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| Video Demo |
| Stock | Symbol | Grade | |
|---|---|---|---|
| Bristow Group | BRS | C | HOLD |
| Dresser-Rand G | DRC | B | BUY |
| ENGlobal Corp. | ENG | D | SELL |
| Geokinetics In | GOK | B | BUY |
| North American | NOA | C | HOLD |
| Oceaneering In | OII | B | BUY |
| Stock | Symbol | Grade | |
|---|---|---|---|
| AirTran Holdin | AAI | D | SELL |
| Allegiant Trav | ALGT | D | SELL |
| Copa Holdings | CPA | B | BUY |
| Delta Air Line | DAL | D | SELL |
| Hawaiian Holdi | HA | D | SELL |
| JetBlue Airway | JBLU | D | SELL |





