Analyst note: Who will the tax rebate benefit the most?

Wedbush Morgan Securities analysts on Tuesday said video game companies and companies offering back-to-school items such as Skechers Inc. will likely see a strong benefit from fiscal-stimulus checks as they start arriving early next month.

In a note to investors on Tuesday, the company said retailers are marketing to those receiving checks. Sears Holdings Co., for example, will offer a 10 percent bonus to consumers who convert checks into gift cards, and others are expected to make similar offers.

Wedbush analyst Joan Storms said she expects hardline retailers _ which offer mostly non-apparel goods _ will see a "minimally positive, but short-lived" benefit.

Retailers that offer non-discretionary and lower-ticket goods, such as Tractor Supply Co. and PetSmart, are likely to benefit, while higher-priced retailers such as Williams-Sonoma Inc. will see less benefit.

In terms of softline, or apparel retailers, the same will hold true, wrote analyst Betty Chen. She said a lack of new fashion trends may limit discretionary spending in the sector. Lower-price apparel retailers such as Charlotte Russe and companies targeting younger customers with "fashion-right" assortments such as Guess Inc. and Urban Outfitters Inc. are likely to feel the biggest benefit.

Analyst Jeff Mintz said in the footwear sector, companies with strong back-to-school offerings are likely to benefit the most, such as Skechers Inc., especially since families with dependent children get a larger stimulus check.

A "strong impact" is expected in the video-game and entertainment segments, where spending has stayed strong despite a downturn in the retail sector, according to analyst Michael Pachter.

"We believe that prices of video game products relative to the amount of the rebate checks makes these purchases attractive and as a desirable form of relatively inexpensive entertainment," he wrote.

Nintendo Co. will likely benefit the most due to high demand for its DS and Wii hardware and strong slate of new and upcoming games, according to Pachter.