Since the economic stimulus checks have either been received or will soon be received by almost all Americans, I wanted to take tonight to look at five stocks that should benefit quite nicely from those checks. We all know that when Americans receive a check of $600 or even $1200, many will end up putting alot of that back in the economy even if they do want to try to save some money up. What kind of places will they probably be spending it most? What stocks could receive a near-term bounce because of this bump?
Top 5 Stocks to Benefit from Economic Stimulus Check Spending
- Best Buy (NYSE:BBY) Best Buy is the perfect kind of company to get sales increases from economic stimulus spending. When the American consumer gets a check that they weren't counting on, many like to spend it on discretionary spending items such as the newest electronics and gadgets. Best Buy releases its earnings tomorrow morning so we may see soon if they are seeing any boost.
- Apple (Nasdaq:AAPL) Apple really is here for many of the same reasons, but it also has the 3G iPhone working for it. The release date of July 11th is bound to have some consumers putting much of their check into a new iPhone. The recently upgraded iPods should also be selling well through the summer with this economic stimulus boost.
- Children's Place Retail Stores (Nasdaq:PLCE) This company seems to be in the process of a major and impressive turnaround. It makes a lot of sense that there will be some extra money spent on some children's clothing because of the stimulus checks and PLCE serves to benefit from it and its continuing turnaround.
- Las Vegas Sands (NYSE:LVS) In my opinion it is unfortunate that a company like Las Vegas Sands would benefit from economic stimulus checks, but I think they will. I believe consumers would do much better investing their money in a stock or a mutual fund than gambling with their stimulus check, but its bound to happen in plenty of cases.
- Tiffany and Company (NYSE:TIF) Fine jewelers generally receive a nice little boost at any time that discretionary spending gets a quick pop. TIF could very well see a short-term pop in sales from middle class consumers reaching up to purchase higher end products.
It should be shocking to no one that four of the five on this list are retailers, and even Apple can be considered somewhat of a retailer now. The retail sector, which has been hit very hard in recent months due to declining sales and recession worries needed a boost like this. Watch same-store retail stores in the next couple months very closely if you want to see which companies take advantage of the stimulus checks most and cash in on discretionary spending.
Some retailers will no doubt receive a short-term boost, but the real trick here is picking the ones that will capitalize the best. I believe these five names have a great chance.
What stocks do you think stand to benefit the most from the economic stimulus checks being spent?
Want to learn more about the Economic Stimulus/Tax Rebates from previous GrowYourFunds posts? Here you go!
- Stimulus payments have begun
- Tax rebate schedules announced, when you'll get your check!
- The IRS Rebate Calculator
- Tax rebate or advance? Yes It's an advance!
- Economic Stimulus Act of 2008 signed into law, here's the details.
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Don't you think Visa or Mastercard will be the true winners in this as well? I doubt most people will be cashing the checks, and going to an Apple store to buy a new iPod with cash. It is more likely that people will spend however much, but will more than likely use their credit cards.
Posted by: Anonymous | June 16, 2008 7:38 PM | Permalink to Comment