In this article, we will look at the 11 Best Retail Stocks to Buy Right Now.
Resilient Consumer Spending, Falling Consumer Sentiment
Although the stock market is undergoing volatility due to the effects of Trump’s tariffs, the March retail sales report brought a beacon of light by showing that consumer spending remained stronger than expected. The Commerce Department reported that while consumer sentiment continued falling, demand remained high.
The retail sales advanced estimate showed a 1.4% month-over-month growth, surpassing the Dow Jones estimate of 1.2% and significantly exceeding the 0.2% increase in February. CNBC reported on April 16 that, according to numbers adjusted for seasonality (but not prices), the year-over-year growth came up to 4.6%. The monthly rise was the highest since January 2023.
The numbers were also better than expected, excluding autos, as sales grew 0.5% compared to the forecast of 0.3%. Economists anticipated that auto sales would rise as consumers attempted to get ahead of the impending aggressive tariffs imposed by President Trump. Hobby, sports goods, and music stores also underwent a 2.4% growth, while hardware stores and building materials underwent a 3.3% rise. Similarly, food service and drinking places grew by 1.8%.
These trends thus show that consumer spending is demonstrating resilience amid the uncertainty brought about by tariffs and the concerns of a weakening economy. CNBC reported that Chris Rupkey, chief economist at Fwdbonds, said the following about the situation:
“Net, net, these are simply blow-out numbers on March retail sales where the rush is on like this is one gigantic clearance sale. Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can.”
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What March’s Positive Retail Sales Report Could Mean
These positive retail sales numbers challenge various market sentiment readings that pointed toward looming fears that Trump’s tariffs would plunge the American economy into a recession and take prices sky-high. We discussed this situation in a recently published article on 11 Best Internet Retail Stocks to Buy According to Analysts. Here is an excerpt from the article:
Trade policies and tariffs have dominated the stock market since the beginning of April, resulting in volatility and uncertainty. However, CNBC reported on April 16 that retail sales rose 1.4% in March, surpassing expectations. CNBC reported earlier on April 15 that the March retail sales report had the potential to impact investor positioning and confidence. According to Dow Jones, economists and experts anticipated a 1.2% month-over-month growth.
CNBC reported that the primary catalyst for this growth is a pull-forward of consumer spending to get ahead of increased good prices brought about by tariffs. It also reported that Freedom Capital Markets chief global strategist Jay Woods opined that retail stocks could undergo a short-term bounce if the retail sales report were in line or better than expected. He said:
“Some of these names have gotten way too far ahead of themselves on the downside that bounces are natural. They’ve gotten beaten down and mean reversion could lead to a nice rally over the coming days.”
Callie Cox, chief market strategist of Ritholtz Wealth Management, expressed similar sentiments, saying a strong retail sales report could potentially lead to a rise in consumer discretionary stocks.
“Consumer Discretionary stocks have been hit so hard that they may be more susceptible to a relief rally on the back of a retail sales report that doesn’t show the economy is falling apart,” said Cox.
With the retail sales report exceeding expectations, these analyst opinions could potentially come true.
With these reassuring trends in view, let’s look at the 11 best retail stocks to buy right now.
A customer browsing a variety of residential furniture and accessories in a retail store.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 30 retail stocks and chose the top 11 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Retail Stocks to Buy Right Now
11. Burlington Stores, Inc. (NYSE:BURL)
Number of Hedge Fund Holders: 52
Burlington Stores, Inc. (NYSE:BURL) is an off-price retailer of branded apparel. It also sells accessories, footwear, and home merchandise for relatively lower prices. Its clothing section offers an elaborate array of fashion-focused, in-season merchandise, including women’s and men’s ready-to-wear, youth, baby, and coats. The company operates more than 1007 stores, primarily under the brand name Burlington Stores.
Burlington Stores, Inc. (NYSE:BURL) has a strong off-price business model. It saw total sales growth of 11% in fiscal year 2024, with comparable store sales growth of 4%. The company opened 101 net new stores in 2024 and relocated 31 of its older oversized locations. Investors are bullish on the stock due to its solid metrics, which reflect significant progress toward the company’s long-term financial goals. In a report released on April 14, Matthew Boss from J.P. Morgan maintained a Buy rating on Burlington Stores, Inc. (NYSE:BURL) and set a price target of $287.00.
The company also delivered strong performance in fiscal Q4 2024, with comparable store sales growth of 6% versus a guidance of 0% to 2%. This growth was attributed to deliberate strategies executed by the company’s merchants, supply chain, and store teams. Its net income for the quarter was $261 million, while diluted EPS was $4.02. Burlington Stores, Inc. (NYSE:BURL) ranks 11th on our list of the best retail stocks to buy right now.
10. Dollar General (NYSE:DG)
Number of Hedge Fund Holders: 53
Dollar General (NYSE:DG) is a retailer that offers an elaborate array of merchandise in its stores, including consumables, beverages, seasonal items, and more. Its merchandise collection includes its own private brands and brands from manufacturers. The company is the tenth-best retail stock to buy right now.
On April 8, Truist raised the firm’s price target on Dollar General (NYSE:DG) to $93 from $76. Robert Ohmes from Bank of America Securities also reiterated a Buy rating on Dollar General (NYSE:DG) in a report released on March 14, setting a $90.00 price target. The analyst gave his rating due to the company’s positive outlook amid elevated expenses in 2025. The company exhibited resilience by exceeding earnings expectations in fiscal Q4 2024. Adjusted EPS reached $1.68, surpassing the anticipated $1.50. This was attributed to a 1.2% increase in comparable sales, supported by ticket growth.
The analyst also said that Dollar General (NYSE:DG) is on the path to attaining a 6%-7% operating margin by 2028-2029, up from the current forecast of approximately 4.6% for 2025. This bullish outlook is supported by strategic initiatives such as DG Media, an increase in damages management, and a bounce back to pre-pandemic shrink levels. In addition, Dollar General’s (NYSE:DG) digital expansion and ‘Back to Basics’ initiatives are also factors behind the analyst’s bullish sentiments, as they are expected to improve operational efficiency and productivity, supporting long-term growth and market share gains.
9. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 56
Target Corporation (NYSE:TGT) is a retail giant operating over 2,000 discount department stores and hypermarkets across the US and Canada. It serves its customers various items, including food, everyday essentials, differentiated merchandise at discounted prices, and general merchandise. Its merchandise categories span organic food and beverages, groceries, dairy, and others.
The company is facing some headwinds, with management noting weakening consumer confidence and pressure from tariff uncertainty through February. While Target Corporation’s (NYSE:TGT) 2025 guidance reflects flat growth, it also boasts several competitive advantages. It has stores in all 50 states, with store models perfectly fitting the rural, suburban, and urban markets simultaneously, appealing to all income categories. It expects to add around $15 billion in retail sales over the next five years.
Management is confident that its initiatives to generate financial efficiencies will position the company for long-term profitable growth. For Target Corporation’s (NYSE:TGT) fiscal year 2026, it is guiding a 1% net sales growth and an adjusted EPS target of $9.80, reflecting an annual 10.6% increase.
Target Corporation (NYSE:TGT) is also investing in its business, opening new stores and spending money on remodels. The company is in a position to expand its market share in several categories, enhance its stores and supply chains, improve sales through same-day delivery, expand its media business, and build an online advertising business.
8. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 60
Founded in 1988, Lululemon Athletica Inc. (NASDAQ:LULU) is a luxury athletic apparel, footwear, and accessories retailer with around 38,000 employees. It sells leisure-athletic wear and accessories such as socks, bags, and yoga mats for fitness activities.
Evercore ISI analyst Michael Binetti maintained a Buy rating on Lululemon Athletica Inc. (NASDAQ:LULU) on April 16 and set a price target of $320.00. William Blair analyst Sharon Zackfia also reiterated their bullish stance on the stock, giving a Buy rating on April 2. The analyst based this positive rating on the potential effect of Trump’s tariffs on Lululemon Athletica Inc.’s (NASDAQ:LULU) products. Although the tariffs could impact a considerable portion of the company’s merchandise because of their tariffed sourcing origins, the analyst remains bullish on the stock’s ability to withstand these challenges.
More than 60% of Lululemon Athletica Inc.’s (NASDAQ:LULU) sales occur in the United States, and it operates with a merchandise margin of 70%, so a 35% blended tariff could act as a considerable obstacle. However, the Buy rating suggests that the company is poised to sustain its profitability and navigate these challenges. It takes the eighth spot on our list of the best retail stocks to buy right now.
7. Ross Stores, Inc. (NASDAQ:ROST)
Number of Hedge Fund Holders: 62
Ross Stores, Inc. (NASDAQ:ROST) is an off-price apparel retailer that operates home fashion stores under two brands: Ross Dress for Less (Ross) and DD’s Discount. It operates around 2,205 store locations in 44 US states, the District of Columbia, and Guam. Customers can find discounted in-season designer and name-brand apparel at the company’s stores, along with footwear, accessories, and home fashion. These discounts typically vary from 20% to 60% compared to department and specialty store regular prices, giving the company a competitive market edge.
In March, the company opened 16 Ross Dress for Less and three dd’s DISCOUNTS stores in 14 states, continuing its expansion plans. In a report released on April 14, Matthew Boss from J.P. Morgan maintained a buy rating for the company, setting a price target of $161.00.
Ross Stores, Inc. (NASDAQ:ROST) also reported fiscal Q4 2024 earnings at the high end of its expectations, with sales driven by customers’ positive responses to the improved assortments of quality branded bargains. Sales for fiscal Q4 2024 were $5.9 billion, with a comparable store sales gain of 3%, on top of a 7% gain in the same period last year.
Ross Stores, Inc. (NASDAQ:ROST) reported similar positive results for 2024. Its net income for fiscal 2024 rose to $2.1 billion compared to $1.9 billion last year, while total sales for the year increased to $21.1 billion, up from $20.4 billion in the prior year. These trends reflect the company’s strong operations, ranking it fifth on our list of the best retail stocks to invest in according to hedge funds.
6. Dollar Tree, Inc. (NASDAQ:DLTR)
Number of Hedge Fund Holders: 64
Dollar Tree, Inc. (NASDAQ:DLTR) operates discount department stores and offers a wide range of merchandise under the business segments Dollar Tree and Family Dollar. Dollar Tree stores offer consumable merchandise, seasonal goods, and variety merchandise. The Family Dollar segment is a general merchandise retail discount store offering affordable merchandise in convenient neighborhood locations.
On April 7, Citi upgraded Dollar Tree, Inc. (NASDAQ:DLTR) to Buy from Neutral, setting a price target of $103, up from $76. The analyst opined in a research note that the higher tariffs across the board are expected to be positive for the company, as the higher tariffs would allow it to expand its price points from $1.25 to $1.50 or $1.75. The firm thus considers Dollar Tree, Inc. (NASDAQ:DLTR) a winner in a volatile environment with bubbling retail prices.
The company is also set to close the sale of its Family Dollar segment by the end of this year, allowing it to focus on Dollar Tree’s long-term growth, profitability, and returns on capital. According to our list, it is the sixth-best retail stock to invest in.
5. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 70
Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets, Acme, Carrs, and more.
In a report released on April 16, Steven Shemesh from RBC Capital maintained a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) and set a $23.00 price target. Albertsons Companies, Inc. (NYSE:ACI) also reported strong financial performance across all metrics, with 2024 results ahead of its expectations and guidance. Total revenue grew by 10% over 2023, above the company’s upper single-digit longer-term forecast. Its adjusted EBITDA grew 18% in 2024, while its adjusted net EBITDA margin of 41% expanded more than 300 basis points.
These trends reflect the inherent leverage in Albertsons Companies, Inc.’s (NYSE:ACI) software model. The company’s cash flow generation also remains strong, with cash flow from operating activities reaching $359 million in 2024, more than double the previous year.
4. Nike, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 73
Nike, Inc. (NYSE:NKE) designs, markets, and distributes luxury athletic footwear, accessories, equipment, and services for sports and fitness activities. Its operating segments span EMEA, Greater China, APLA, and North America. The company also designs products specifically for the Converse and Jordan brands. Ike Boruchow from Wells Fargo released a report on April 15, maintaining a Buy rating on Nike, Inc. (NYSE:NKE) and setting a price target of $75.00.
The company is facing several challenges, including the potential impact of tariffs as most of its shoes are produced in China, Vietnam, and Indonesia. However, Nike, Inc. (NYSE:NKE) is the market leader for sportswear and boasts a global presence with unmatched visibility that gives it a competitive advantage. It generated $48 billion in revenue in the past 12 months, and its financials do not paint an altogether bleak picture.
Nike, Inc.’s (NYSE:NKE) new management is employing various strategies to bring the company back on track and pave the way for long-term profitability. These include developing new products, boosting marketing, and focusing more on sports-related apparel and footwear than fashionable merchandise. Nike, Inc. (NYSE:NKE) ranks fourth on our list of the top retail stocks to invest in right now.
3. TJX Companies, Inc. (NYSE:TJX)
Number of Hedge Fund Holders: 74
TJX Companies, Inc. (NYSE:TJX) operates in the Marmaxx and HomeGoods, TJX International, and TJX Canada segments. Its stores offer an assortment of value home decorations, apparel, decorative accessories, footwear, accessories, giftware, and more.
TJX Companies, Inc. (NYSE:TJX) is getting notable analyst attention amid ongoing tariff and economic slowdown concerns. Analysts are viewing it as an attractive choice amid macro uncertainties and tariffs. Three firms have reaffirmed a Buy rating on the company since the beginning of April, including Bank of America Securities, Telsey Advisory, and Bernstein. The stock was also upgraded to Buy by a Citi analyst in the same month. Thus, Wall Street appears highly bullish on TJX Companies, Inc. (NYSE:TJX), ranking it third on our list of the best retail stocks to buy right now.
The company also has strong operations. Its overall sales surpassed $56 billion in fiscal Q4 2025, while full-year comparable store sales grew by 4%. TJX Companies, Inc. (NYSE:TJX) attained a significant profitability increase, and its quarter EPS reached $1.23, exceeding analyst expectations. In addition, the company’s net sales grew to $16.4 billion, a 5% increase versus last year’s adjusted sales.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 96
Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores and is one of the most popular department stores in the US. It offers its customers elaborate offerings, including food, beverage, groceries, and more.
Costco Wholesale Corporation (NASDAQ:COST) is one of the most resilient retailers in the sector, and its membership fees are pivotal to its profit generation. In fiscal 2024, the company made $4.8 billion in membership fees. It recently increased its base membership fee to $65, which will be reflected in the current fiscal year’s earnings. Its paid members have also grown by 7% annually over the last two years.
Despite weakening consumer sentiment and inflation, Costco Wholesale Corporation (NASDAQ:COST) delivered strong comparable sales in fiscal Q2 2025, rising 9.1% (excluding fuel prices and currency exchange) and reflecting strong demand for its offerings. The company’s e-commerce sales also grew by 22.2%, demonstrating strong consumer appetite and ranking it second on our list of the top retail stocks to invest in right now.
Costco Wholesale Corporation (NASDAQ:COST) is also continually expanding its operations. It ended fiscal Q2 2025 with 897 warehouses. Last year, it added 29 stores, expanding its store base by roughly 3%.
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, including food, beverages, general merchandise, electronics, and more.
On April 11, Mizuho initiated coverage of Walmart Inc. (NYSE:WMT) with an Outperform rating and a $105 price target. In a research note, the firm told investors that Walmart’s transformation into a tech-led player in the industry has “finally reached a tipping point,” where its convenience and delivery are comparable to those of anyone in the consumer sector.
Overall, the company is showing solid operations. It reported sales growth of 5.2% in fiscal Q4 2025, along with a 9.4% adjusted operating income growth in constant currency. Walmart Inc. (NYSE:WMT) is continually gaining market share across income levels and countries. Unit volumes and transaction counts were up across all its markets in the year’s first three quarters, reflecting its healthy top line. The company’s prices are low, and it is becoming increasingly convenient, resulting in its growing popularity.
Walmart Inc.’s (NYSE:WMT) global advertising business is continually showing positive results and is expected to be one of the largest drivers of operating income for the company, even faster than sales. Over the last year, the company’s global advertising grew 27% to about $4.4 billion. Global membership income also rose 21% to about $3.8 billion.
Overall, WMT ranks first among the 11 best retail stocks to buy right now. While we acknowledge the potential of retail stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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