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Families will pay more for some key back-to-school essentials such as backpacks ahead of the new school year.
Concerns that potential tariffs will drive prices even higher are changing the way many parents shop, reports show.

A variety of school supplies, including lunch boxes and backpacks in different colors and patterns, are on display for the upcoming school year.
Deb Cohn-Orbach | UCG | Universal Images Group | Getty Images

Although inflation is cooling, President Donald Trump’s new tariff rates are threatening to drive prices higher, which could leave some parents in a bind amid the back-to-school shopping season.
Families are now paying more for some key back-to-school essentials, such as backpacks, ahead of the new school year. CNBC used the producer price index — a closely followed measure of inflation — to track how the costs of making certain items that students need changed between 2019 and 2025.

In the face of more expensive gear, many families are prepared to cut back.
Back-to-school spending for K-12 students is estimated to reach a collective $30.9 billion, or an average of roughly $570 per child this year, according to a new 2025 back-to-school retail survey by Deloitte. However, that is down from $586 in 2024, even with higher prices across categories. Deloitte polled more than 1,200 parents in May.
“This season, we’re expecting families to approach back-to-school season with a bit of caution as some concern about the economy and their own personal financial situations are top of mind,” said Brian McCarthy, a principal in Deloitte’s retail strategy & analytics practice.

Trump’s initial “liberation day” tariff agenda, which set a 10% baseline levy for nearly all countries as well as much higher duties on dozens of nations, was set for April 2, but those higher rates were paused for 90 days. On Monday, Trump signed an executive order delaying the tariff deadline until Aug. 1.
The full effect of steep new tariffs hasn’t been felt by shoppers yet, according to Jack Kleinhenz, chief economist at the National Retail Federation.

“However, if the large increases in tariffs announced earlier this year take effect and are sustained, they will infiltrate consumer prices, causing a downshift in spending,” he said in a July 8 blog post.
“Economic fundamentals appear solid at this juncture, but uncertainty is pervasive,” Kleinhenz said. 

Back-to-school shopping strategies

Concerns over inflation, potential tariffs and product shortages are already pushing consumers to change their back-to-school shopping habits, reports also show.
According to Deloitte, 75% of parents said they will switch brands if their preferred brand is too expensive, up from 62% in 2024; 65% will shop at affordable retailers over their preferred stores.
And, 56% are cutting back on non-essential purchases altogether to save money, according to data from Intuit Credit Karma.
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Nearly two-thirds, or 62%, of shoppers also said they’ll begin back-to-school shopping before August, a significant increase from 2024, another report by Coresight Research found. That’s “probably to preempt any price rises,” said Coresight analyst John Mercer.
“We haven’t seen the tariff impact on that yet, largely because of the pauses,” he added.
“At some point, if tariffs come in, there will be price impacts,” Mercer said, and “consumers are right to be concerned.”
Still, over half of parents — 53% — said they would go into debt to cover extracurriculars, and 46% would do the same for back-to-school items to help their child “fit in” at school, also up from the year before, according to NerdWallet’s 2025 back-to-school shopping report. Many parents are influenced to splurge on a “hot” back-to-school item or first-day outfits, Deloitte also found.
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The Defense Department will buy $400 million of preferred stock in MP Materials.
MP Materials owns the only operational rare earth mine in the U.S. at Mountain Pass, California.
It will build a second magnet manufacturing facility in the U.S. with the support of the Pentagon.
Rare earths are key components in a range of military weapons systems.

The Defense Department will become the largest shareholder in rare earth miner MP Materials after agreeing to buy $400 million of its preferred stock, the company said Thursday.
MP Materials owns the only operational rare earth mine in the U.S. at Mountain Pass, California, about 60 miles outside Las Vegas. Proceeds from the Pentagon investment will be used to expand MP’s rare earths processing capacity and magnet production, the company said.

Shares of MP Materials jumped more than 60% premarket on the news.
Rare earths are used in magnets that are key components in a range of military weapons systems including the F-35 warplane, drones and submarines, according to the Defense Department.
The U.S. was almost entirely dependent on foreign countries for rare earths in 2023 with China representing about 70% of imports, according to the U.S. Geological Survey. Rare earths have been a central point of contention in recent trade disputes between the U.S. and China.
Interior Secretary Doug Burgum said in April that the Trump administration was considering making direct equity investments in critical mineral companies to break U.S. dependence on China.
MP Materials CEO James Litinsky described the Pentagon investment as a public-private partnership that will speed the buildout of an end-to-end rare earth magnet supply chain in the U.S.

“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” Litinsky said in a statement.

Public-private partnership

The Pentagon is buying a newly created class of preferred shares convertible into MP Materials’ common stock, in addition to a warrant that allows the U.S. to buy additional common stock.
The convertible shares and the exercise of the common stock warrant would equal about a 15% stake in MP Materials as of July 9, nearly twice the 8.61% held by Litinsky and the 8.27% held by BlackRock Fund Advisors, according to FactSet data.
MP Materials will build a second magnet manufacturing facility in the U.S. to serve defense and commercial customers with support from the Pentagon. The facility, whose location wasn’t disclosed, is expected to start commissioning in 2028 and will bring MP Materials rare earth magnet manufacturing capacity to 10,000 metric tons.
The Defense Department is guaranteeing that 100% of the magnets made at the new facility, called 10X, are purchased by defense and commercial customers for 10 years after the plant is built.
The Pentagon will also establish a price floor for 10 years of $110 per kilogram for NdPr products that are stockpiled or sold by MP Materials. NdPr is a rare earth compound used to make permanent magnets.
JPMorgan and Goldman Sachs are providing $1 billion to help finance the manufacturing facility. MP Materials also expects to receive a $150 million loan from the Pentagon to expand its rare earth separation capabilities at Mountain Pass. More

Newly enacted changes to the Supplemental Nutrition Assistance Program, or SNAP, may cause 22.3 million families to lose some or all of their benefits, according to research from the Urban Institute.
Here’s how much that may reduce what families can spend monthly on food.

People shop at a grocery store in Manhattan, New York City, on April 1, 2025.
Spencer Platt | Getty Images

Republicans’ “big beautiful” reconciliation package includes tax cuts that policy researchers have found primarily benefit the wealthy. 
To help pay for that, the legislation also includes “substantial” cuts to the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps, according to research from the Urban Institute.

The changes will cause 22.3 million families to lose some or all of their SNAP benefits, according to the institute, a nonpartisan provider of policy research. Its analysis is based on the legislation passed by the Senate, which the House did not change before voting for the bill, signed into law by President Donald Trump.
SNAP currently provides basic food assistance to more than 40 million people, including children, seniors and nonelderly adults with disabilities, according to the Center on Budget and Policy Priorities, a nonpartisan research and policy institute.
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Of the 22.3 million families who will be affected by the legislation’s changes, 5.3 million would lose at least $25 per month in SNAP benefits, according to Urban Institute’s analysis.
On average, those families would lose $146 per month in SNAP support, the Urban Institute found.

The Congressional Budget Office has estimated the changes in the Senate reconciliation bill would cut SNAP funding by about 20%, or $186 billion through 2034. That makes it “the largest cut to SNAP in history,” according to the Center on Budget and Policy Priorities.

How the ‘big beautiful bill’ cuts SNAP benefits

Currently, many individuals are limited to three months of SNAP benefits every three years unless they are working for 20 hours per week or qualify for an exemption.
The new legislation will expand those requirements to individuals ages 55 through 64, parents of minor children ages 14 and up and veterans. It is unclear when those new rules go into effect.
Those new work requirements may throw even working people who qualify off benefits if they do not report their eligibility properly, according to Elaine Waxman, senior fellow at the Urban Institute.
Around 3.5 million working families, who have at least one family member working during the year, would lose at least $25 per month in benefits, or $108 per month on average, Urban Institute’s research estimates.
That estimate is based on families who may not consistently meet the required work hours, according to Waxman. However, because additional households may lose eligibility if they fail to properly comply with the administrative process, the total could be higher, she said.

Additionally, the legislation requires states to pay for a portion of benefit costs, ranging from 5% to 15%, if their payment error rate is at or over 6%. The error rates measure the accuracy of states’ eligibility and benefit payments. In fiscal year 2024, states had a 10.9% average payment error rate, with many states over 6%, according to the Department of Agriculture.
States that can’t pay those shares may have to cut SNAP benefits or opt out of the program entirely, according to the Center on Budget and Policy Priorities.
While states will have until 2028 to start helping to pay for SNAP benefits, they will likely be aggressive in getting their error rates down sooner, according to Waxman.
“I think that we will start to see SNAP declines for administrative reasons in the near future as states struggle with that,” Waxman said. “I do think the effects will be felt sooner.”
Even if families’ eligibility for SNAP hasn’t changed, they could fall off the program if they fail to get recertified for benefits, which can lead to hardship, Waxman said.
Children who are eligible for SNAP may also see cuts in school meals and in summer EBT, or electronic benefits transfer, food benefits, according to CBPP.
The law also limits SNAP eligibility to U.S. citizens and lawful permanent residents.

How SNAP cuts affect the economy

Every dollar spent on SNAP generates $1.54 in benefit for local economies, according to 2019 research from the U.S. Department of Agriculture’s Economic Research Service.
“People do spend SNAP dollars right away,” Waxman said, which helps grocery stores, producers, processors and transportation companies.

Those funds can help to support hiring even during downturns, she said.
However, following the new law, states may be more likely to cut benefits during a recession if their budgets are stretched, according to CBPP.
“Typically, in a recession, more people need SNAP and the rolls go up,” Waxman said.
If the changes under the new law prompt the program’s administrative capacity to become stressed, SNAP may not be as well suited to respond to people’s needs as it has been in the past, she said. More

Over the past 20 years, 99% of U.S. counties have experienced a flood event, according to the National Flood Insurance Program by the Federal Emergency Management Agency.
While floods can be bigger risks in areas near bodies of water, they can happen anywhere, “even on a mountaintop,” says an insurance expert.

A drone view shows flooded houses, following torrential rains that unleashed flash floods along the Guadalupe River in San Angelo, Texas, on June 4, 2025, in this screen grab obtained from a social media video.
Patrick Keely | Patrick Keely Via Reuters

‘Every home can be exposed’

Texas is one of the most flood-prone areas in the U.S., Worters said — flash floods, river overflows and tropical storms result in billions of dollars in insured losses per year.
“Flooding in Texas has become a growing threat,” she said.
But it’s a nationwide risk. Over the past 20 years, 99% of U.S. counties have experienced a flood event, according to the National Flood Insurance Program by the Federal Emergency Management Agency. About 40% of NFIP claims are from outside high-risk zones.
While floods can be bigger risks in areas near bodies of water, they can happen anywhere, “even on a mountaintop,” Worters said.
“Every home can be exposed,” she said.
For example, in 2024, Hurricane Helene caused massive flooding in mountainous areas such as Asheville, North Carolina. Less than 1% of households there were covered by the NFIP, according to a report by the Swiss Re Institute.
Parts of central North Carolina also experienced flash floods over the July Fourth weekend, as Tropical Storm Chantal made its way inland. “This historic weather event caused flooding like we haven’t seen in several decades in the central part of the state,” Joey Hopkins, North Carolina’s transportation secretary, said in a press release Tuesday.

Why homeowners insurance doesn’t cover floods

Insurers tend to avoid covering risks that produce “highly correlated losses” that can be “catastrophic in nature,” said Daniel Schwarcz, a law professor at the University of Minnesota Law School who focuses on insurance law and regulation. Floods are one such disaster, as are earthquakes.
“When it affects one person dramatically, it often affects many, many people dramatically,” he said.
About 90% of all presidentially declared U.S. natural disasters involve flooding, per FEMA.

Residents might have water damage coverage included in their homeowners policy, which can cover events such as pipe bursts, said Karl Susman, president and principal insurance agent of Susman Insurance Services, Inc. in Los Angeles. 
But such provisions do not cover damage from rising water levels, experts say. 
“When you have sudden, intense flooding that’s caused by heavy rain in a short period of time, that’s a flash flood,” Worters said. “That’s something that would not be covered on your regular homeowners [policy].”

Where to get flood insurance

Because standard policies often explicitly exclude flooding, if you want coverage, you’ll need a standalone policy.
You can get flood insurance from FEMA’s NFIP, which is considered the primary source of flood coverage in the U.S. The NFIP typically covers up to $250,000 in damages to a residential property and up to $100,000 on the contents.
As of 2024, the NFIP has more than 4.7 million flood insurance policies in force, providing coverage in excess of $1.28 trillion, according to FEMA.
If you have an expensive home or expect more severe damage to your property, consider asking an insurance agent about so-called “excess flood insurance,” Worters said. Such policies are written by private insurers that cover losses over and above what’s covered by the NFIP, she said.
If you decide to get coverage through the NFIP, keep in mind that there is usually a 30-day waiting period before the new policy goes into effect. 

NFIP may not be your only option. Some private insurers now offer standalone flood insurance policies as risk modeling and actuarial projections — or financial estimates for future events — have improved, said Worters. 
According to a recent report by LendingTree using 2023 nationwide data from S&P Global, the average cost for private flood insurance is $98 a month. A separate report by NerdWallet using 2025 NFIP rates found that the average flood insurance through FEMA costs $75 a month. 
Keep in mind, however, that the price you pay for coverage will depend on factors including where you live. Compare all the options available to you in your area, as they can be “drastically different” in cost, said Susman. 
Schwarcz said homeowners can sometimes get cheaper policies through private insurance companies as they use different mechanisms from the NFIP. 
“You want to look in both places,” he said. More

The federal government underreported the number of international students in the U.S. last year by more than 200,000 students.
The student and exchange visitor information system data issued by the Department of Homeland Security was corrected this month to show overseas enrollments rose, rather than declined.
These enrollment figures have been at the center of an escalating battle over international student visas.

Jonathan Drake | Reuters

International student enrollment increased last year, according to the U.S. Department of Homeland Security — contrary to data the agency previously posted, which showed a decline.
A new analysis by Chris Glass, a professor at Boston College, found that student and exchange visitor information system data issued by DHS underreported the number of international students by more than 200,000 — an error that the agency corrected this month. Glass flagged the change on July 7.

The numbers from SEVIS, a division of U.S. Immigration and Customs Enforcement, show overseas enrollments totaled 1,294,231 in September, compared to the earlier-reported, erroneous figure of 1,091,182. SEVIS data tracks college students as well students in public and private high schools, language training, flight schools and vocational schools, among other programs.
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The corrected data shows year-over-year growth of 6.5%, according to Glass. This is largely in line with Open Doors data, released by the U.S. Department of State and the Institute of International Education, which also found that the U.S. hosted a record number of students from abroad in the 2023-24 academic year. 
The revised numbers show “robust growth,” Glass told CNBC. “It’s critical data at a moment when people are paying close attention to the number of international students in the U.S.”
SEVIS did not immediately respond to a request for comment.

Trump, Harvard battle over international enrollment

For now, the fate of international enrollment at Harvard and elsewhere is still up in the air.
In early June, Harvard President Alan Garber said in a statement that “Harvard’s Schools continue to make plans to ensure that our international students and scholars will be able to pursue their academic work fully.”

People hold up signs during the Harvard Students for Freedom rally in support of international students at the Harvard University campus in Boston, Massachusetts, on May 27, 2025.
Rick Friedman | Afp | Getty Images

Although international undergraduate and graduate students in the U.S. make up slightly less than 6% of the total U.S. higher education population, at Harvard, the share of international students is disproportionately high.
International students accounted for 27% of Harvard’s total enrollment in the 2024-25 academic year, up from 22.5% a decade earlier.
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President Donald Trump’s megabill includes an increased tax on the endowment income of the nation’s top colleges.
The Joint Committee on Taxation figures this endowment tax will bring in $761 million over 10 years.
Higher education experts say the new, higher tax rates could lead to revenue shortfalls and cause some schools to raise tuition prices, cut financial aid or both.

The “one big beautiful” tax-and-spending package President Donald Trump signed on Friday included several significant changes for higher education — among them, an increased tax on the endowment income of the nation’s top colleges.
Instead of the existing flat 1.4% tax rate, there is now a new multi-tiered rate of up to 8%, with larger endowments subject to the highest rate. (Schools with fewer than 3,000 tuition-paying students are exempt, regardless of their endowment size.)

The Joint Committee on Taxation estimates this endowment tax will bring in $761 million over 10 years. Higher education experts say the new, higher tax rates could lead to revenue shortfalls and cause some schools to raise tuition prices, cut financial aid or both.
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The exemption for schools with fewer than 3,000 tuition-paying students scaled back the plan from earlier versions of the GOP’s marquee legislation. “It’s not an endowment tax anymore, it’s a research university tax,” said Rick Grafmeyer, a partner at Capitol Tax Partners in Washington.
According to a recent analysis from Forbes, at least 11 colleges and universities — including many of the nation’s top research institutions — will have their endowment earnings taxed at an 8% or 4% rate in 2026, while five will pay a 1.4% tax. Previously, 56 universities paid about $380 million under that endowment tax rate.

Yale University.
Yana Paskova / Stringer (Getty Images)

Yale University warned that the tax hike would have immediate consequences for the school’s bottom line.

“Although the endowment tax is lower than what the House passed originally, it still means that Yale will pay an estimated $280 million in the first year it is in effect, and likely more in subsequent years,” Yale’s President Maurie McInnis said in a statement on July 3. Earlier versions of the proposal called for tiered rates as high as 21%.
The university announced before the bill passed that it had already implemented a temporary hiring freeze, lowered annual salary increases for faculty and staff members and delayed several construction projects at the school in anticipation of the tax increase and other federal actions.

Colleges to face ‘unprecedented fiscal challenges’

Higher endowment taxes, along with restrictions on international student enrollment and major cutbacks of federal and state funds, put many colleges in a precarious financial position, according to Robert Franek, editor in chief of The Princeton Review.
“Colleges, both private and public, are facing unprecedented fiscal challenges this year and en masse,” Franek said.
“Most concerning, for prospective students, is these factors may cause tuitions to be higher and reduce the amount of financial aid schools award,” he added.  
At some colleges, the higher endowment tax exceeds the college’s total financial aid budget, according to higher education expert Mark Kantrowitz, “making it difficult for colleges to continue to award very generous financial aid.”
Typically, when it comes to offering aid, wealthier institutions have more money to spend. Those generous aid packages remove the most significant financial barrier to higher education and help attract lower-income applicants. 

Tuition hikes are likely to follow the higher endowment tax, other experts also say. “We’re already seeing evidence that institutions are raising their sticker prices more than they have been in the past,” Phillip Levine, a fellow at the Brookings Institution and professor of economics at Wellesley College, told CNBC.
College tuition has surged by 5.6% a year, on average, since 1983, significantly outpacing other household expenses, a recent study by J.P. Morgan Asset Management found.
Going forward, “it doesn’t seem like 5% or 6% is out of line or beyond what schools are willing to do, and that’s at [both] public and private institutions,” Levine said. “And they’re doing this because they’re expecting revenue shortfalls.”
— Senior field producer Stephanie Dhue contributed to this report.
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The “big beautiful bill” includes a $6,000 additional deduction for certain older Americans ages 65 and over.
However, the legislation does not end federal income taxes on Social Security benefits.
Here’s how the changes in the bill may impact current and future retirees.

Republican presidential nominee former President Donald Trump speaks at a campaign rally in Asheville, N.C., Wednesday, Aug. 14, 2024.
Matt Rourke | AP

The Social Security Administration sent what experts say is a misleading email to consumers last week, describing President Donald Trump’s “one big beautiful bill” as “long-awaited tax relief to millions of older Americans.”
In that email and a July 3 press release, the agency said the legislation will make it so “nearly 90%” of Social Security beneficiaries no longer pay federal income taxes on benefits. It attributed that to an additional $6,000 senior deduction and another unspecified provision.

Tax experts say that is not accurate.
The legislation does not, as the agency put it, include “a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries.” Moreover, while the Social Security Administration memo said the law helps protect Social Security, experts say the provisions weaken the program’s funding by reducing the tax money it receives.
“It’s simply not correct to say that there’s a provision in this bill that is going to eliminate the Social Security benefit tax for 90% of the population,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.
“And it’s also just wrong to say that this is going to preserve the solvency of Social Security,” Gleckman said.
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Trump had said on the campaign trail that he planned to eliminate federal income taxes on Social Security benefits. However, the reconciliation process through which the budget and tax legislation was passed prohibits changes to Social Security.
The Social Security Administration did not return requests for comment. The White House deferred comment to the Social Security Administration.
The Council of Economic Advisers, an agency within the presidential executive office, estimates that changes in the legislation will help push the portion of seniors with exemptions and deductions exceeding Social Security income to 88%, from 64% under current law.
Those tax changes include a higher standard deduction, the existing senior deduction already in effect and the new additional senior deduction or “bonus.”

How the $6,000 senior ‘bonus’ works

The new tax package includes an additional deduction of up to $6,000 for seniors ages 65 and over.
While the additional senior deduction has been called a “bonus” in the legislative text, it is technically a deduction, which reduces the amount of income that is subject to taxes.
Notably, that does not necessarily mean seniors will see a $6,000 “bonus” check in the mail or in their refunds at tax time.
“This is not like what happened during Covid, when the government was writing checks to people,” Gleckman said.
Per the legislation, the deduction will be in place for tax years 2025 through 2028. It will be available to eligible taxpayers regardless of whether they take the standard deduction or itemize their returns.
But eligibility depends on income. Taxpayers with up to $75,000 in modified adjusted gross income — or up to $150,000 if married and filing jointly — may receive the full deduction. For incomes above those thresholds, the deduction gradually phases out.
Middle-income seniors stand to benefit the most from the change, according to tax experts.

How the bonus affects tax on Social Security benefits

A person holds a sign reading ‘Save Our Social Security’ in support of fair taxation near the U.S. Capitol in Washington, D.C. on April 10, 2025. Tax justice advocates attended a rally to speak out against President Trump’s tax cuts for the wealthy, and to urge members of Congress to intervene.
Bryan Dozier | Afp | Getty Images

Social Security benefits are taxed based on combined income, or the sum of adjusted gross income, nontaxable interest and half of Social Security benefits.
Individuals with between $25,000 and $34,000 in combined income may have up to 50% of their Social Security benefits taxed. If their combined income is more than $34,000, up to 85% of their benefits may be taxed.
For married couples with combined income between $32,000 to $44,000, up to 50% of their benefits may be taxed. If they have over $44,000, up to 85% of their benefits may be taxed.
Those thresholds are not adjusted for inflation, which means that over time more beneficiaries pay taxes on their benefits.
Because the new senior bonus is an above-the-line deduction, meaning it is subtracted from gross income to calculate adjusted gross income, it may indirectly reduce tax liability on Social Security benefits.

Who may benefit from the senior ‘bonus’

The additional senior deduction will not affect taxes on Social Security benefits for individuals and couples below those income thresholds, since they already are not subject to levies on their benefits, Gleckman said.
Nor will it help people who earn too much to qualify for the new deduction. Higher-income individuals and married couples with more than $75,000 or $150,000 in modified adjusted gross income, respectively, may not see their Social Security benefit taxes reduced, unless they are in the phaseout window.
For taxpayers who qualify, the senior deduction may reduce, rather than eliminate, their taxes on benefits, Gleckman said. The Urban-Brookings Tax Policy Center estimates that fewer than half of older adults will benefit from the senior deduction, he said.
Even those who benefit won’t necessarily see zero taxes; they’ll just see fewer taxes, Gleckman said.
“The people who benefit the most, we estimate, are people who made between $50,000 and $200,000,” Gleckman said.

The legislation may be more generous to seniors than to taxpayers in other age cohorts, said Alex Durante, senior economist at the Tax Foundation.
“The enhanced adoptions overall are going to reduce tax liabilities for seniors significantly, and for some people, it will probably wipe out any tax liability they have,” Durante said.
“But it depends on where they are in the income distributions,” he said.

How ‘big beautiful bill’ affects Social Security funding

While certain seniors may see financial benefits now, the enhanced senior deduction will cost the Social Security program, which is already under financial strain.
The new additional senior deduction and other changes in Trump’s “big beautiful bill” may reduce taxation of Social Security benefits by approximately $30 billion per year, estimates the Committee for a Responsible Federal Budget.
That would accelerate the projected insolvency date for the Social Security trust fund devoted to retirement benefits to late 2032, up from the currently projected date of early 2033, according to CRFB.

To help shore up the program’s funds, Congress faces a choice of raising taxes, cutting benefits or a combination of both.
The sooner any changes are enacted, the more time there is for them to be phased in, according to experts.
“Every year we delay reforming the program means those changes will have to be steeper and affect more people closer to retirement age,” CRFP President Maya MacGuineas wrote in a recent op-ed. More

Dado Ruvic | Reuters

President Donald Trump’s announcement of a U.S.-Vietnam trade deal and a solid June jobs report lifted stocks last week, but investors can still find plenty of opportunities to snap up names at attractive levels.
The recommendations of top Wall Street analysts can help inform investors as they search for the stocks of companies with strong fundamentals and solid growth opportunities.  

Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Dell Technologies

This week’s first stock pick is Dell Technologies (DELL), a provider of IT hardware, software, and services.
Following meetings with management, Evercore analyst Amit Daryanani reiterated a buy rating on Dell with a price target of $150. Meanwhile, TipRanks’ AI analyst has an “outperform” rating on DELL with a price target of $128.
Notably, Daryanani stated that he came away from the meetings incrementally positive about Dell’s ability to deliver high-single-digit revenue growth and a double-digit increase in earnings per share (EPS) and free cash flow (FCF). His optimism is backed by the initiatives taken by the company over the past two years to optimize its cost structure and tailwinds from key AI (artificial intelligence) investments.
Among the key takeaways from the meetings, the analyst highlighted that the AI server margins are turning out to be better than initially expected, with Dell earning a premium compared to rivals while delivering impressive growth. He also pointed out the company’s innovations in its infrastructure offerings, with its internal liquid cooling capabilities becoming a more vital part of its strategy.

Daryanani added that Dell expects to benefit from acceleration in enterprise AI adoption over the next five to seven years. In fact, the company believes that higher-margin enterprise customers could account for the vast majority of AI server sales over time. Daryanani also noted Dell’s confidence about navigating tariff woes, given that it “believes its diversified and global footprint is an advantage over its competitors.”
Daryanani ranks No. 187 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 63% of the time, delivering an average return of 14.8%. See Dell Technologies Stock News and Insights on TipRanks.

Trade Desk

We move to Trade Desk (TTD), a cloud-based advertising platform that providers advertisers with cutting-edge technology to find new audiences and grow their brands.
Recently, Evercore analyst Mark Mahaney upgraded Trade Desk stock to Buy from Hold with a price forecast of $90. Interestingly, TipRanks’ AI analyst has an “outperform” rating on TTD stock, but with a lower price target of $83. Mahaney views the pullback in TTD stock as an attractive buying opportunity “to get involved again in what has proved over time to be one of the highest quality and most consistent performers across the Internet landscape.”
Explaining his bullish stance, Mahaney stated that recent checks have indicated that online ad demand sentiment has clearly improved since April/May, though uncertainty about the second half of the year remains significant. He added that the checks reflect a clear improvement in Trade Desk’s execution. Also, solid product announcements, like that of Deal Desk, helped address some concerns about the transition from the company’s legacy platform Solimar to the AI-powered Kokai platform.
Mahaney mentioned that checks indicated a clear improvement in the company’s execution, both on product and go-to-market strategy. While the analyst acknowledged increasing competition from Amazon’s demand-side platform (DSP), he highlighted that Google’s DV360 and not Trade Desk is more likely to be impacted due to its overlap with the areas where AMZN is strong.   
Finally, Mahaney thinks that Trade Desk’s set-ups for the remainder of fiscal 2025 look quite achievable, with his billings analysis suggesting that the company is very likely to exit 2025 at premium growth levels (excluding political spend). He sees significant catalysts for 2026 such as the World Cup, the Winter Olympics and the full-year Kokai impact.
Mahaney ranks No. 214 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 60% of the time, delivering an average return of 16.0%. See Trade Desk Ownership Structure on TipRanks.

Amazon

This week’s third pick is e-commerce and cloud computing giant Amazon (AMZN). In a research note dated July 1, Jefferies analyst Brent Thill reaffirmed a buy rating and increased the Amazon stock price forecast to $255 from $250. Meanwhile, TipRanks’ AI analyst has assigned an “outperform” rating on AMZN stock with a price target of $233.
Thill raised his price target after Jefferies’ proprietary survey of nearly 700 U.S. consumers in mid-/late June indicated that Amazon “remains resilient despite price increases related to tariffs, with stable spend levels and upside if pricing on other websites becomes more expensive.”
The analyst noted that although 80% of the respondents are concerned about prices, the survey reflected a stable spending pattern by most Amazon shoppers (62% spent the same or more in the past three months). However, the survey noted some cost-conscious behavior, as 31% spent less in the past three months.
Thill highlighted that the survey also reflected that Amazon Prime remains the most popular membership and a major loyalty driver for the company. Notably, 73% of respondents reported having a Prime membership, compared to 26% for rival Walmart. He also noted Amazon’s superior positioning on fast and free shipping, selection, and low prices.
The analyst said that given the heightened focus on prices, Amazon’s Prime Day event could turn out to be more popular and impactful by running for four days instead of two (from July 8 to July 11 vs. July 16 to July 17 in 2024) across 20 countries. He expects the event to result in incremental Prime memberships, particularly among students and young adults ages 18 to 24 via six-month extended free trials.
Thill ranks No. 109 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 15.2%. See Amazon Insider Trading Activity on TipRanks. More