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11 Best Retail Stocks To Buy Now

In this article, we will be taking a look at the 11 best retail stocks to buy now. To skip our detailed analysis of the retail sector, you can go directly to see the 5 Best Retail Stocks To Buy Now.

How Has The Retail Sector Been Performing?

With rising inflation that the Federal Reserve has been continuously striving to combat, it should come as no surprise to most people that your typical consumer has been unable to spend as much as they would like to. In such an economic environment, many consumers and investors would expect the retail sector to suffer. While this may be true to some extent, it should come as a comfort to investors that the retail sector is continuing to put up a good fight, as evidenced by its performance in the month of September.

On October 17, CNBC’s “Squawk Box” noted that retail sales in September were actually much higher than expected. Here’s what CNBC’s Rick Santelli had to say on the matter:

“Retail sales hitting the wires for the month of September. Expecting up three tenths on headline, more than double, up seven tenths of one percent. To find a higher number than that, you have to go back to January when we were up 2.8%, although we did have another seven tenths screen in May.”

This growth of 0.7% in comparison to the expected growth for retail sales, which was 0.3%, is a hopeful indicator that despite the inflationary environment, the retail sector is managing to stay in the green. Such performance can be a motivator for investors looking to invest in retail stocks today, especially those like Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and Walmart Inc. (NYSE:WMT), since these are arguably some of the best retail stocks to buy now.

What Can We Expect From The Sector In 2024?

On October 24, Matthew Boss, JPMorgan’s retail analyst, joined CNBC’s “Squawk on the Street” to talk about his retail playbook heading into the next year. Here’s what he had to say:

“I’ve been a broken record on this show talking about value and convenience. That’s what matters to the low-to-middle income consumer. Walmart, Target, the discounters, the grocers, they’ve invested a tremendous amount of money over the last five years to be more convenient. Technology, battling up against the e-commerce retailers – I think that the small-box retailers, the dollar stores have lost a step on this convenience element, which means there’s an increased battle on value, which translates to margin compression. So our view is for value and convenience, it’s off-price. I love TJX and Ross Stores. I think that what they’re doing, they’re bringing top, known brands to the consumer at great values, and I think that’s the way to win in ’24 and ’25.”

By considering Boss’ analysis and top picks in the retail sector for the years to come, alongside our list below, investors will be sure to come across a variety of names that can be considered some of the best retail stocks to buy in 2023 and beyond. They include clothing retail stocks alongside general merchandise retailers and more. By picking up such stocks, investors can be sure that they have the top retail stocks in their portfolios as they prepare to head into the next year.

Our Methodology

We have selected the best retail stocks to buy now by using Insider Monkey’s hedge fund data for the second quarter. The stocks are ranked based on the number of hedge fund holders holding stakes in them, from the lowest to the highest number.

Best Retail Stocks To Buy Now

11. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 59

The TJX Companies, Inc. (NYSE:TJX) is an apparel retail company based in Framingham, Massachusetts. The company operates as an off-price apparel and home fashion retailer in the US, Canada, Europe, and Australia. It sells family apparel such as footwear and accessories and home basics such as furniture, rugs, lighting products, and giftware, among more.

A Buy rating was maintained on shares of The TJX Companies, Inc. (NYSE:TJX) on September 6 by Laura Champine, an analyst at Loop Capital. The analyst also raised her price target on the stock from $100 to $105.

There were 59 hedge funds long The TJX Companies, Inc. (NYSE:TJX) in the second quarter, with a total stake value of $2.1 billion.

Holding 57,624 shares in the company, Ayrshire Capital Management was the largest shareholder in The TJX Companies, Inc. (NYSE:TJX) at the end of the second quarter.

Here’s what ClearBridge Investments said about The TJX Companies, Inc. (NYSE:TJX) in its second-quarter 2023 investor letter:

“Top heavy leadership has overshadowed weakness across much of the equity market. We took advantage of the narrow breadth in the second quarter to increase our exposure to the consumer discretionary sector with two purchases that further enhance portfolio diversification and should help support consistent performance through a full cycle.

The TJX Companies, Inc. (NYSE:TJX) is the leading off-price apparel and home furnishings retailer known for its TJ Maxx, Marshalls and HomeGoods brands, with 4,800 global locations. We see TJX as a differentiated retailer offering shoppers a combination of value and convenience with continued share gain opportunity against large addressable U.S. markets for apparel and home decor. We also see room for TJX to modestly expand margins on the back of sales leverage and as freight, shrink and wage pressures ease. While TJX is not immune to macro risks, we see the company as relatively well-positioned even in the event of an economic deterioration as benefits from better inventory availability and consumer trade-down accrue.”

10. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 61

Dana Telsey, an analyst at Telsey Advisory Group, reiterated an Outperform rating on shares of Lululemon Athletica Inc. (NASDAQ:LULU) on September 21. The analyst also maintained a price target of $450 on the stock.

Lululemon Athletica Inc. (NASDAQ:LULU) is an apparel, accessories, and luxury goods company. It designs, distributes, and retails athletic apparel, footwear, and accessories under the Lululemon brand, among more. The company is based in Vancouver, Canada.

We saw 61 hedge funds long Lululemon Athletica Inc. (NASDAQ:LULU) in the second quarter. Their total stake value in the company was $3.04 billion.

Viking Global was the largest shareholder in Lululemon Athletica Inc. (NASDAQ:LULU) at the end of the second quarter, holding 1.2 million shares in the company.

Kinsman Oak Capital Partners mentioned Lululemon Athletica Inc. (NASDAQ:LULU) in its first-quarter 2023 investor letter:

“What is relatively new, however, is that we are beginning to see substantial write-downs and impairment charges. For instance, Lululemon Athletica Inc. (NASDAQ:LULU) is already exploring a sale of Mirror, the struggling fitness technology company it bought less than three years ago for half a billion dollars. Lululemon executives recently announced a $433 million impairment charge on the business (-89%). That is not an insignificant amount of money.”

9. JD.Com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 64

JD.Com, Inc. (NASDAQ:JD) was spotted in the 13F holdings of 64 hedge funds at the end of the second quarter, with a total stake value of $2 billion.

JD.Com, Inc. (NASDAQ:JD) is a broad-line retail company based in Beijing, China. The company provides supply chain-based technologies and services in China. It offers computers, communication, and consumer electronics products alongside home appliances and general merchandise products such as food and beverages.

As of October 25, Ronald Keung, an analyst at Goldman Sachs, maintains a Buy rating on shares of JD.Com, Inc. (NASDAQ:JD). The analyst also placed a price target of $53 on the stock.

Like Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and Walmart Inc. (NYSE:WMT), JD.Com, Inc. (NASDAQ:JD) is one of the best retail stocks to buy now, according to hedge fund sentiment.

8. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 64

Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retail company based in Mooresville, North Carolina. The company offers products for construction, maintenance, repair, remodeling, and decoration. It also offers home improvement products like appliances, seasonal and outdoor living products, and lawn and garden products.

A total of 64 hedge funds were long Lowe’s Companies, Inc. (NYSE:LOW) in the second quarter. Their total stake value in the company was $3.7 billion.

On October 5, Scot Ciccarelli, an analyst at Truist Securities, maintained a Buy rating on shares of Lowe’s Companies, Inc. (NYSE:LOW). The analyst also placed a price target of $235 on the stock.

This is what Pershing Square Holdings said about Lowe’s Companies, Inc. (NYSE:LOW) in its first half of 2023 investor letter:

Lowe’s Companies, Inc. (NYSE:LOW) is a high-quality business with significant long-term earnings growth potential operated by a superb management team that has been successfully executing a multi-faceted business transformation. In recent quarters, industrywide sales have retrenched slightly, driven by record lumber deflation, moderation in DIY discretionary demand (particularly with big-ticket items), a mix-shift from large to smaller Pro-specific projects, and a general trend of consumers reallocating budgets from goods to services. Sales remain elevated relative to 2019 baseline levels driven by a combination of price and mix, while units have largely normalized. Against this backdrop, Lowe’s headline same-store-sales growth has been modestly negative, offset by material margin expansion and the benefits of Lowe’s best-in-class share buyback program positioning the company to generate roughly flat earnings growth in 2023.

Lowe’s remains well positioned to manage through uncertainty. Nearly two-thirds of Lowe’s revenue comes from non-deferrable repair and maintenance activity, which is comparatively insulated from the macroeconomic environment. Lowe’s continues to make progress on various business initiatives that should aid the company’s ability to improve share and grow revenue even in challenging macro environments. Select initiatives for 2023 include the continued rollout of Lowe’s market-based delivery model (now >60% complete, a critical component of Lowe’s business transformation objectives), a new 300-store rural localization merchandising program, and enhancements to Lowe’s MVP Pro Rewards program…” (Click here to read the full text)

7. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 67

Ayrshire Capital Management was the most prominent shareholder in Costco Wholesale Corporation (NASDAQ:COST) at the end of the second quarter, holding 9,364 shares in the company.

Costco Wholesale Corporation (NASDAQ:COST) is a consumer staples and merchandise retail company based in Issaquah, Washington. The company operates membership warehouses in the US, Puerto Rico, Canada, Mexico, Japan, and Korea, among a range of other countries. It offers branded and private-label products in several merchandise categories, including sundries, dry groceries, coolers, and more. It is one of the best retail stocks to buy right now.

Joseph Feldman, an analyst at Telsey Advisory Group, reiterated an Outperform rating on shares of Costco Wholesale Corporation (NASDAQ:COST) on October 19. The analyst also maintained a price target of $600 on the stock.

Our hedge fund data shows 67 hedge funds long Costco Wholesale Corporation (NASDAQ:COST) in the second quarter, with a total stake value of $2.2 billion.

Patient Capital Management mentioned Costco Wholesale Corporation (NASDAQ:COST) in its second-quarter 2023 investor letter:

“Many technicians and quantitative strategists expect growth stocks to continue to outperform. There’s a good shot that’s right but longer term, we remain more optimistic on classic value. People remain enamored with growth investing. Value stocks trade at a discount to historical valuations unlike growth stocks, which trade at a premium.

Take two high quality stocks as an example, Costco Wholesale Corporation (NASDAQ:COST) (“growth”) vs. JPMorgan (“value”). Costco (COST) has a long history of excellent performance, earning attractive returns on capital with consistent growth. Over the past 30 years, it’s grown earnings per share at 9% per year, but it’s compounded capital at better than 16% annually as the P/E multiple expanded from ~12x to 37x this fiscal year’s earnings. Sell-side consensus expects EPS growth to continue at roughly the same rate for the next 5 years. If it sustains the current multiple, the 9% implied return would be solid. But with valuations near all-time highs, and interest rates on the rise, there’s clear risk to that valuation.

Costco’s P/E grew from 18x to 37x during the same time JPMorgan’s fell from 12x to 10x. This makes sense to a certain extent because while both companies delivered improving returns on capital, Costco’s improved more. Valuations are sensitive to interest rates. Since JPM experienced no valuation expansion, it also seems to have less valuation risk.

We can calculate the justified P/E based on return on capital, cost of capital and growth rate. For companies with very high returns on capital and strong growth (like Costco), very high P/Es can be justified, especially in a low interest rate environment. We also analyze market implied expectations by calculating the implied growth rates. For Costco, it’s about 5.3% – in perpetuity! That seems elevated to us! For JPMorgan, it’s less than 0.5%. Way too low in our opinion.”

6. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 68

A Buy rating was maintained on shares of The Home Depot, Inc. (NYSE:HD) on October 5 by Scot Ciccarelli at Truist Securities. The analyst also placed a price target of $341 on the stock.

The Home Depot, Inc. (NYSE:HD) was seen in the portfolios of 68 hedge funds at the end of the second quarter, with a total stake value of $2.2 billion.

Based in Atlanta, Georgia, The Home Depot, Inc. (NYSE:HD) is a home improvement retail company. It sells building materials, home improvement products, lawn and garden products, and decoration products alongside others.

Like Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and Walmart Inc. (NYSE:WMT), The Home Depot, Inc. (NYSE:HD) is among the best retail stocks to buy in this year.

Click to continue reading and see the 5 Best Retail Stocks To Buy Now.

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Disclosure: None. 11 Best Retail Stocks To Buy Now is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

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Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

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