• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Back-to-school may lift U.S. retail shares after recent lull

September 3, 2021 by David Barret Leave a Comment

September 3, 2021

By Caroline Valetkevitch

NEW YORK (Reuters) – Strong late-summer back-to-school sales could provide U.S. retailers some needed momentum after many sector shares lagged the broader market in recent months.

The S&P 500 retailing index, which includes Amazon.com Inc , is up just about 2% for the quarter so far, compared with a 6% gain in the S&P 500.

Some retailers, including Macy’s Inc and Walmart Inc, cited upbeat back-to-school data recently as they increased annual U.S. sales forecasts, but further sales data and the U.S. August retail report are expected later this month.

With the help of advance child tax credits and stimulus checks related to the pandemic, some consumers have had extra cash to load up on backpacks and other supplies.

Most U.S. schools are returning this year to in-class instruction after months of remote learning. New York City’s public schools reopen Sept. 13, and many New York metro area schools begin in the days after the Labor Day weekend, when parents typically continue to pick up school supplies.

Retail shares along with some other value-related sectors tied to the economy have underperformed growth sectors in recent months, said Phil Orlando, chief equity market strategist at Federated Hermes, in New York. The S&P value index is up about 2% for the quarter, while the growth index is up more than 8%.

But that trend is likely to change, and retail is among the groups that will “catch a second wind here and run through the end of the year … into the beginning of next year,” he said.

Holiday sales and back-to-school sales have a strong correlation, he noted.

Investors have been optimistic about back-to-school sales given the comparisons with last year, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

“I don’t think there’s any question that back-to-school is going to be far stronger than last year,” he said.

“That’s been somewhat factored into expectations,” he said, noting that retail stocks are still higher than six months ago.

Also, supply chain issues could be a drag for some retailers, said Eric Kuby, chief investment officer of North Star Investment Management Corp in Chicago.

“Our operating assumption is that it doesn’t get worse. … They are working hard on the supply chain to get products on the shelf,” he said.

Shares of some bigger retailers have outperformed, so investors may need to look for bargains, Kuby said.

“We haven’t sold any (retail shares) … but our favorite pick in the retail area is Target, and that’s a great stock but it’s not inexpensive,” he said.

Target Corp shares are up about 39% for the year to date, compared with about a 14% gain in the S&P 500 retailing index over that same period.

Shares of products-related companies might have more room to run, Kuby said, such as ACCO Brands Corp, which his firm owns.

“Investors’ attention will pivot more to holiday sales,” he said. “That’s where focus is going to be.”

(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Richard Chang)

Source Link Back-to-school may lift U.S. retail shares after recent lull

David Barret
David Barret

Related posts:

  1. Islamic State ‘Beatle’ pleads guilty to murdering U.S. hostages
  2. Brazil FX helped by solid trade surplus as domestic tensions intensify
  3. Soccer-Netherlands coach Van Gaal expects another test against Montenegro
  4. The day the music died: Afghanistan’s all-female orchestra falls silent

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Have You Seen This Snake? Florida Wants Your Help Finding Rare Species Seen Once In 50 Years
  • Plague Confirmed In Lake Tahoe Area For First Time In 5 Years, California Officials Say
  • Supergiant Star Spotted Blowing Milky Way’s Largest Bubble Of Its Kind, Surprising Astronomers
  • Game Theory Promised To Explain Human Decisions. Did It?
  • Genes, Hormones, And Hairstyling – Here Are Some Causes Of Hair Loss You Might Not Have Heard Of
  • Answer To 30-Year-Old Mystery Code Embedded In The Kryptos CIA Sculpture To Be Sold At Auction
  • Merry Mice: Human Brain Cells Transplanted Into Mice Reduce Anxiety And Depression
  • Asteroid-Bound NASA Mission Snaps Earth-Moon Portrait From 290 Million Kilometers Away
  • Forget State Mammals – Some States Have Official Dinosaurs, And They’re Awesome
  • Female Jumping Spiders Of Two Species Prefer The Sexy Red Males Of One, Leading To Hybridization
  • Why Is It So Difficult To Find New Moons In The Solar System?
  • New “Oxygen-Breathing” Crystal Could Recharge Fuel Cells And More
  • Some Gut Bacteria Cause Insomnia While Others Protect Against It, 400,000-Person Study Argues
  • Neanderthals And Homo Sapiens Got It On 100,000 Years Earlier Than We Thought
  • “Womb Of The Universe”: Native American Tribal Elders Help Archaeologists Decipher Ancient Rock Art In Missouri Cave
  • 16,000-Year-Old Paintings Suggest Prehistoric Humans Risked Their Lives To Enter “Shaman Training Cave”
  • Final Gasps Of A Dying Star Seen Through A Record-Breaking 130 Years Of Data
  • COVID-19 “Vaccine Alternative” Injection Could Be On Fast-Track To Approval From FDA
  • New Jersey Officials Investigate Possible First Locally Acquired Malaria Case Since 1991
  • First-of-Its-Kind Bright Orange Nurse Shark Recorded Off Costa Rica Makes History
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version