Three stocks to play as student loan repayment slashes borrowers’ budgets, Jefferies says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

The suspension of student loan repayments ends next week, and budget-conscious shoppers will likely trade down.

Federal student loan payments are coming back in October – and a trio of stocks are set to shine as borrowers cut their spending, according to Jefferies. Payments on federal student loans had been paused since March 2020 as part of a package of Covid-era relief measures. Interest on these debts resumed accruing on Sept. 1. Those payments will likely put a dent into borrowers' budgets. A recent poll of about 630 U.S.

"WMT has a degree of downside protection due to potential trade-down," the firm noted. "And TJX remains best-positioned within the off-price space." Walmart beat Wall Street's estimates for sales and earnings in its fiscal second quarter and hiked its full-year earnings forecast. Shares of the big-box retailer are up 15% year to date, but analysts' average price target suggests nearly 10% upside from here, according to LSEG. TJX , the parent of T.J.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines