• 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

  • What Did Neanderthals Sound Like?
  • One Star System Could Soon Dazzle Us Twice With Nova And Supernova Explosions
  • Unethical Experiments: When Scientists Really Should Have Stopped What They Were Doing Immediately
  • The First Humans Were Hunted By Leopards And Weren’t The Apex Predators We Thought They Were
  • Earth’s Passage Through The Galaxy Might Be Written In Its Rocks
  • What Is An Einstein Cross – And Why Is The Latest One Such A Unique Find?
  • If We Found Life On Mars, What Would That Mean For The Fermi Paradox And The Great Filter?
  • The Longest Living Mammals Are Giants That Live Up To 200 Years In The Icy Arctic
  • Entirely New Virus Detected In Bat Urine, And It’s Only The 4th Of Its Kind Ever Isolated
  • The First Ever Full Asteroid History: From Its Doomed Discovery To Collecting Its Meteorites
  • World’s Oldest Pachycephalosaur Fossil Pushes Back These Dinosaurs’ Emergence By 15 Million Years
  • The Hole In The Ozone Layer Is Healing And On Track For Full Recovery In The 21st Century, Thanks To Science
  • First Sweet Potato Genome Reveals They’re Hybrids With A Puzzling Past And 6 Sets Of Chromosomes
  • Why Is The Top Of Canada So Sparsely Populated? Meet The “Canadian Shield”
  • Humans Are In The Middle Of “A Great Evolutionary Transition”, New Paper Claims
  • Why Do Some Toilets Have Two Flush Buttons?
  • 130-Year-Old Butter Additive Discovered In Danish Basement Contains Bacteria From The 1890s
  • Prehistoric Humans Made Necklaces From Marine Mollusk Fossils 20,000 Years Ago
  • Zond 5: In 1968 Two Soviet Steppe Tortoises Beat Humans To Orbiting Around The Moon
  • Why Cats Adapted This Defense Mechanism From Snakes
  • 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