WING - Retail stocks that could benefit from higher food stamp spending

The retail sector could see a tailwind in the last quarter of the year from increased food stamp spending. The Biden administration approved the largest single increase in benefits to the SNAP program to give families who qualify an extra $36.24 per person. The USDA says about 42M American participate in the program. Cowen analyst John Kernan thinks off-price retailers, TJX Companies (TJX -2.3%), Ross Stores (ROST -3.6%) and Burlington Stores (BURL -2.9%) could be best positioned to see a benefit when the new benefits kick in on October 1. The long list of other companies that could see an increase in sales from their customers in a lower-income bracket also includes Dollar General (DG -2.8%), Dollar Tree (DLTR -2.0%), Ollie's Bargain Outlet Holdings (OLLI -0.3%), Big Lots (BIG -3.1%), Burlingston Stores (BURL -2.9%), McDonald's (MCD -1.0%), Yum Brands (YUM -0.7%) and Wingstop (WING -1.9%). The retail sector is lower

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Retail stocks that could benefit from higher food stamp spending