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This time of year, parents and students alike are gearing up for back to school. As back to school spending has soared over the years, many states are taking notice. They want as big of the piece of pie as possible so they enacted tax free shopping days to entice consumers to spend. As an investor, you can join in with back to school stocks.

Just what are back to school stocks you ask? They are the stocks of companies who will get a boost from the spending on back to school supplies. You might be thinking that the boost won’t be much, if anything.

But you would be wrong. According to the National Retail Federation, back to school spending in 2017 is expected to hit $83.6 billion dollars.

The 3 back to school stocks I list below are prime candidates to take advantage of this influx of consumer spending.

3 Back To School Stocks To Add To Your Portfolio

#1. Best Buy (NYSE: BBY)

We live in a digital world and digital products cost a decent amount of money. This is where Best Buy comes into play.

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In the past, you might have been able to get away with a basic laptop for college. But now, you need something more powerful. And you need a tablet too. The reason is because many textbooks have now gone digital.

By having a tablet, you can ease your back by not lugging around a heavy book bag. And having a tablet can make it easier to share files and documents with classmates.

But it doesn’t end there for electronics. Depending on where you live on or off campus, you might need a printer, ink, a television, etc. And if you are in a dorm, a microwave and small refrigerator are essential.

Best Buy has students covered with all of the above.

The stock has been consistently rising for the past year, but with the recent pullback, now is a great time to jump in.

#2. Target (NYSE: TGT)

Target stock has been in a downward slide since the end of 2016. The retailer saw shares get hammered after reporting disappointing holiday numbers for 2016. But Target had a plan to grow its e-commerce division and get its brick and mortar stores back to glory.

And this time of year will be a good test to see how far the company has come. Many middle and upper middle income parents will be going to Target for many of their students back to school needs.

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This includes low cost things like paper, pens and folders, but also for higher priced items like bedding, furniture and electronics.

For Target, not only will this time be a good chance to earn some revenue, but they might also be able to sign up a slew of new Target Red cardholders, enticing them with the 5% discount on purchases.

At the onset, Target will take the hit on the 5% but the goal will be to earn that back and more with interest payments should consumers not pay the balance in full.

With the stock price still beaten down, now is a great time to get in. You can buy the stock on the cheap and if Target can deliver come the holiday season, you can be sure that the stock will pop.

#3. Amazon (NASDAQ: AMZN)

Amazon has been in the news for their purchase of Whole Foods, but they will probably be in the news when it comes time for back to school shopping. And no back to school stocks list can be complete without mentioning the online giant.

Shoppers can get just about everything on Amazon. From electronics to computers, to household items, even folders, pens and paper. Amazon has it all.

And with 2 day shipping for Prime members, consumers don’t have to worry if their package of supplies will arrive on time.

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I realize that for many investors, Amazon stock looks pricey. But when you factor in everything Amazon has going for it and the room it still has for growth, you quickly realize the stock isn’t that pricey after all.

Final Thoughts

So there are 3 back to school stocks to add to your portfolio. This time of year is huge for retailers looking to firm up their bottom line before going into the critical holiday season.

Many retailers will be offering sales and deals to get shoppers in their doors. While there will be some surprise winners from this shopping season, you can bet that the 3 stocks listed above will benefit the most from the money being spent on back to school items.

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

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