Some of the best long-term stocks to buy on the dip are back-to-school stocks.

With summer nearly over, millions of kids are heading back to school. And with that, billions will be spent on school and even, and for many, dorm supplies.

This year, according to the National Retail Federation (NRF), back-to-school spending could hit $41 billion. Not only is that up from last year, but it’s also up from a prior high of $37 billion in 2021. 

In addition, back-to-college spending could reach $86.6 billion. That includes spending on electronics ($22.8 billion total), dorm spending $12.2 billion), clothing and accessories ($10.9 billion), food ($9.5 billion), and even shoes ($7.1 billion), as also noted by the NRF.

With that in mind, investors may want to strongly consider jumping into back-to-school retail stocks, especially those that are wildly oversold, including:

Target (TGT)

Let’s start with long-term stocks like Target (NYSE:TGT). 

Over the last few days, TGT gapped from about $150 to $135.02, where it appears to have caught strong support. It’s also oversold on RSI, MACD, and Williams’ %R, which is a strong indication of a near-term reversal in the stock. 

If you pull up a two-year chart, you can see that when these three indicators align in oversold territory, the stock bounces. That happened about eight times over the last two years.

Helping, analysts at CFRA just upgraded TGT to a buy with a target of $176, noting, “Target should be able to return to +6% EBIT margins next fiscal year, driven by stronger operating leverage, improvements in shrink, and productivity savings,” as noted by Seeking Alpha.

From its current price of $135.02, I’d like to see Target initially refill its bearish gap at around $150 a share near term.

Walmart (WMT)

There’s also Walmart (NYSE:WMT). Oversold and starting to pivot higher, I’d like to see WMT retest $71 initially from its current price of $68.70. 

Helping, analysts at Evercore ISI see the company “reaffirming its status as a relatively safe haven amidst a volatile consumer backdrop,” when it posts second-quarter earnings this week, as noted by TheStreet.com. The firm also expects WMT to post sales of about $168.5 billion for the quarter, which would be a 4.3% jump year over year.

UBS analysts also raised their WMT price target to $74 ahead of earnings. The firm believes the retailer’s second quarter will show continued “outperformance relative to the broader retail industry,” as noted by TheFly.com. Morgan Stanley also sees another big quarter for WMT even with weakness in consumer spending.

At the moment, consensus estimates are calling for revenue of $167.3 billion, earnings per share of 65 cents, and comparable U.S. sales growth of 3.3%.

Amazon.com (AMZN)

Another one of the top long-term stocks to buy is Amazon.com (NASDAQ:AMZN).

After testing a low of $151.61, the oversold e-commerce giant is just starting to pivot higher. Last trading at $166.80, I’d like to see it initially refill its bearish gap at $190 near-term.

Granted, AMZN had a mixed bag of earnings.

In its most recent quarter, the company saw EPS of $1.26, which was a sizable jump from the 65 cents posted a year ago. Sales were $148 billion, which was about $760 million below estimates. The company also guided for a lower sales range of $154 billion to $158.5 billion, with the midpoint below estimates for $158.43 billion. AWS sales did jump 19% to $26.3 billion, as compared to expectations for growth of 17.6%.

With a good deal of earnings and guidance negativity priced in, I’d use the temporary weakness in the e-commerce giant as a buying opportunity.  Not only will AMZN benefit from the back-to-school trend, but it’ll also benefit since the holidays are creeping up on us.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.