Stocks at Risk as Student Loan Payments Resume: How to Prepare Your Portfolio.
Barclays analysts predict an impending $15.8 billion monthly hit to U.S. spending as the average student loan holder faces a monthly payment of about $390 starting this fall. This will hit 16% of the U.S. population and add pressure on consumer discretionary and apparel stocks, particularly those targeting higher income, higher education, and 18- to 34-year-old cohorts. Retailers such as American Eagle Outfitters, Urban Outfitters, Figs, Victoria’s Secret, Capri Holding, Tapestry, Canada Goose, Nordstrom, Lululemon, and Ulta Beauty are at risk. However, retailers targeting lower income or lower educational levels, or potentially older shoppers, such as National Vision, Burlington Stores, Ross Stores, Old Navy at Gap, and TJX, are seen as less risky.