In this article, we will discuss 12 Best Retail Stocks to Buy According to Analysts.
The global retail industry is projected to reach approximately $29.79 trillion in 2026, with growth expected to continue at a healthy 6.87% CAGR through 2031. Expansion is being fueled by AI-enabled supply chains, rapid e-commerce penetration, and increasingly personalized customer experiences. As technology reshapes how consumers discover and purchase products, retailers are blending digital convenience with physical presence, while sustainability and premiumization emerge as defining themes of the next cycle.
Technology integration is at the center of this evolution. Retailers are deploying AI, machine learning, and advanced analytics to optimize inventory management, streamline logistics, and tailor marketing campaigns in real time. Online sales are projected to grow at a double-digit pace through 2031, supported by mobile commerce and social shopping platforms. At the same time, omnichannel strategies—such as buy-online-pickup-in-store and rapid home delivery—are increasing customer engagement and loyalty. Growth is also being driven by urbanization, rising middle-class income, and expansion into Tier II and III cities, particularly in emerging markets. Personal and household care, along with premium segments, are expected to lead category growth in the coming years.
Investing in retail stocks provides exposure to essential consumer spending while offering a blend of stability, income potential, and long-term growth. The sector spans consumer staples, discretionary brands, and e-commerce platforms, allowing investors to diversify across multiple demand drivers while gaining insight into broader economic trends. Because retail businesses sit at the intersection of consumer behavior and corporate performance, they often serve as real-time indicators of economic health and sentiment.
However, the sector is not without risks. Intense competition can compress margins, discretionary categories remain sensitive to economic downturns, and traditional retailers must continually adapt to online disruption to maintain relevance. Companies that successfully balance operational efficiency, digital innovation, and brand strength are best positioned to navigate these challenges and deliver sustainable returns.
With this context in mind, here is a list of the 12 best retail stocks to buy according to analysts.
Our Methodology
We sifted through ETFs, screeners, and online rankings to identify the best retail stocks to buy right now. From the resultant dataset, we limited our final selection to 12 retail companies that have recently reported noteworthy developments likely to impact investor sentiment. We assessed hedge fund ownership of each stock using Insider Monkey’s hedge fund 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Retail Stocks to Buy According to Analysts
12. Dollar Tree, Inc. (NASDAQ:DLTR)
On February 17, Dollar Tree, Inc. (NASDAQ:DLTR) was upgraded to Buy from Neutral by Rothschild & Co Redburn, which established a $165 price target. Earlier, on February 3, Evercore ISI analyst Michael Montani reduced the firm’s price target to $160 from $165 while maintaining an In Line rating, reflecting adjustments within its Retail Broadlines & Hardlines coverage universe.
During the company’s third-quarter 2025 earnings call, Dollar Tree, Inc. (NASDAQ:DLTR) delivered results characterized by solid execution and accelerating momentum. Comparable sales increased 4.2%, supported by an improving discretionary mix, which expanded 40 basis points to 50.5%. Adjusted earnings per share of $1.21 exceeded prior guidance, reflecting favorable merchandise margin trends and operating discipline. For the fourth quarter, management expects comparable sales growth of 4%–6%, translating to projected net sales between $5.4 billion and $5.5 billion, and adjusted EPS of $2.40 to $2.60.
Dollar Tree, Inc. (NASDAQ:DLTR) raised its full-year outlook, guiding comparable sales growth of 5%–5.5% and adjusted EPS of $5.60 to $5.80, with anticipated net sales of $19.35 billion to $19.45 billion. Gross margin is expected to expand 50 to 60 basis points for the year, driven by sustained strength in merchandise margins, lower freight expense, and occupancy leverage, partially offset by markdown activity and shrinkage.
Dollar Tree, Inc. (NASDAQ:DLTR) is a leading North American discount retailer known for its extreme value merchandising model, offering a broad assortment of consumables, seasonal goods, and discretionary items at highly accessible price points.
11. Burlington Stores, Inc. (NYSE:BURL)
On February 23, JPMorgan raised its price target on Burlington Stores, Inc. (NYSE:BURL) to $356 from $316 while maintaining an Overweight rating as part of a broader retail earnings preview.
During the third-quarter 2025 earnings call, management provided detailed guidance underscoring stable sales performance and margin expansion. Fourth-quarter comparable store sales guidance was maintained at 0% to 2%, with total sales expected to increase 7% to 9%. Adjusted EBIT margin guidance for the fourth quarter was raised to reflect a 30 to 50 basis point expansion. For full-year 2025, Burlington Stores, Inc. (NYSE:BURL) expects comparable store sales growth of 1% to 2%, total sales growth of approximately 8%, and EBIT margin expansion of 60 to 70 basis points despite tariff-related pressures. Third-quarter total sales increased 7%, reaching the high end of prior guidance. Burlington also announced plans to open 110 net new stores in 2026, exceeding prior expectations and reflecting a strong development pipeline. Consistent margin improvement, disciplined cost control, and an accelerating store expansion strategy strengthen Burlington’s long-term earnings trajectory and reinforce the investment case within off-price retail.
Burlington Stores, Inc. (NYSE:BURL) operates off-price retail locations offering branded apparel, footwear, accessories, and home goods at compelling value. Founded in 1972 and headquartered in Burlington Township, New Jersey, the company leverages opportunistic buying and lean inventory management to drive traffic and margin resilience.
