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.
10. Victoria’s Secret & Co. (NYSE:VSCO)
On January 29, Victoria’s Secret & Co. (NYSE:VSCO) saw Goldman Sachs raise its price target to $53 from $47 while maintaining a Neutral rating.
During the third-quarter 2025 earnings conference call, Victoria’s Secret & Co. (NYSE:VSCO) reported net sales of $1.47 billion, representing 9% year-over-year growth. Adjusted gross margin expanded by 170 basis points, while earnings increased 45%, reflecting operational leverage and improved merchandise performance. International retail sales rose more than 30% for the third consecutive quarter of double-digit growth, driven in large part by strong performance in China. The PINK brand delivered double-digit sales growth supported by successful collaborations and greater apparel penetration. Management raised its full-year net sales outlook to a range of $6.45 billion to $6.48 billion and projected adjusted operating income between $350 million and $375 million. Sustained international expansion, margin recovery, and upwardly revised guidance indicate improving brand momentum and earnings power, supporting a favorable medium-term investment thesis.
Tenth on the list of 12 best retail stocks to buy according to analysts, Victoria’s Secret & Co. (NYSE:VSCO) was founded in 1977 and is headquartered in Reynoldsburg, Ohio. The company is a specialty retailer of women’s lingerie, apparel, and beauty products operating more than 1,400 stores globally. It operated through brands including Victoria’s Secret, PINK, and Adore Me, serving diverse consumer segments across intimate apparel and lifestyle categories.
9. Tractor Supply Company (NASDAQ:TSCO)
On February 11, Tractor Supply Company (NASDAQ:TSCO) announced that its Board of Directors increased the annualized dividend by $0.04, or 4.3% year over year, to $0.96 per share for 2026, marking the company’s 17th consecutive year of dividend growth. The Board declared a quarterly cash dividend of $0.24 per share payable on March 10, 2026, to shareholders of record as of February 24, 2026. The Board also appointed Sonia Syngal as an independent director, bringing more than three decades of executive leadership experience at large public companies.
On January 30, Goldman Sachs lowered its price target on Tractor Supply Company (NASDAQ:TSCO) to $59 from $67 while maintaining a Buy rating following fourth-quarter results in which EPS fell short of consensus and 2026 guidance trailed Street expectations. Management cited a pressured consumer backdrop and projected modest same-store sales growth of 1%–3%, supported by initiatives such as Direct Sales, while acknowledging potential volatility from weather and difficult comparisons. Despite near-term headwinds, the company’s consistent dividend growth, targeted strategic initiatives, and resilient rural customer base underpin a durable cash flow profile and provide an attractive entry point for long-term investors.
Founded in 1938 and headquartered in Brentwood, Tennessee, Tractor Supply Company (NASDAQ:TSCO) operates retail stores offering agricultural supplies, lawn and garden equipment, livestock and pet products, and rural lifestyle merchandise. Its niche positioning within rural and semi-rural markets supports customer loyalty and recurring demand for essential goods.
8. Ulta Beauty, Inc. (NASDAQ:ULTA)
On February 20, Ulta Beauty, Inc. (NASDAQ:ULTA) saw JPMorgan raise its price target to $800 from $647 while maintaining an Overweight rating, though the firm removed the stock from its Analyst Focus List following the recent rally and relatively conservative 2026 guidance. The analyst noted that the company’s outlook appears more weighted toward the second half of the year than current consensus estimates, particularly with respect to first-quarter expectations.
Piper Sandler also raised its price target on Ulta Beauty, Inc. (NASDAQ:ULTA) to $775 from $615 while maintaining an Overweight rating. The firm highlighted a strong holiday season and accelerating square footage growth, estimating that Space NK sales could increase in the high 20% range in 2026. Piper models fourth-quarter comparable store sales growth of approximately 5%, above company guidance of 2.5%–3.5%, citing sustained category momentum and operating leverage. The combination of traffic gains, premium brand partnerships, and expansion initiatives positions Ulta for continued share gains within the beauty category, reinforcing a positive long-term investment outlook.
Ulta Beauty, Inc. (NASDAQ:ULTA), founded in 1990 and headquartered in Bolingbrook, Illinois, is a leading U.S. retailer of cosmetics, skincare, fragrance, and salon services. Its differentiated model combines mass and prestige brands under one roof.
7. Dollar General Corporation (NYSE:DG)
On February 17, Dollar General Corporation (NYSE:DG) saw Guggenheim raise its price target to $165 from $140 while maintaining a Buy rating, citing an acceleration in top-line momentum that may signal the early stages of a sustained turnaround rather than a short-term margin recovery driven solely by shrink improvement. On February 6, UBS also raised its price target to $168 from $143 and maintained a Buy rating.
During the third-quarter 2025 earnings conference call, Dollar General Corporation (NYSE:DG) reported net sales growth of 4.6% to $10.6 billion, with same-store sales increasing 2.5%, driven primarily by higher customer traffic, while average basket size remained stable. Gross profit margin expanded 107 basis points to 29.9%, reflecting improved inventory markups and reduced shrinkage. Operating profit increased 31.5% to $425.9 million, and diluted earnings per share rose 43.8% to $1.28. For fiscal 2025, the company expects net sales growth of 4.7%–4.9%, same-store sales growth of 2.5%–2.7%, and EPS between $6.30 and $6.50. Capital expenditures are projected toward the lower end of the $1.3 billion to $1.4 billion range, with approximately 4,885 real estate projects planned, including 575 new U.S. stores and up to 15 new stores in Mexico. Margin expansion, accelerating earnings growth, and disciplined capital allocation suggest that operational initiatives are gaining traction, supporting a constructive view on sustained profitability recovery.
Dollar General Corporation (NYSE:DG), founded in 1939 and headquartered in Goodlettsville, Tennessee, operates a chain of discount retail stores across the United States and Mexico, offering everyday essentials and branded consumer products.
6. Target Corporation (NYSE:TGT)
On February 17, Evercore ISI raised its price target on Target Corporation (NYSE:TGT) to $105 from $103 while maintaining an In Line rating as part of a fourth-quarter earnings preview.
On February 1, 2026, Target Corporation (NYSE:TGT) implemented a leadership transition under which Michael J. Fiddelke assumed the role of Chief Executive Officer and joined the board of directors. His compensation package includes an annual base salary of $1.30 million, a target annual cash incentive equal to 200% of base salary under the Short-Term Incentive Plan, and stock-based awards under the 2020 Long-Term Incentive Plan with a target value of $12.1 million, along with eligibility for executive-level benefits as an at-will employee. Effective the same date, former CEO Brian C. Cornell transitioned to Executive Chair of the Board.
On February 2, 2026, Target agreed to provide Cornell with a $1.12 million base salary, a fiscal 2026 cash incentive opportunity equal to 200% of salary, and a March 2026 restricted stock unit grant valued at $6.0 million, while his previously granted equity awards continue to vest. He is expected to serve as executive chair or special advisor through March 13, 2027, and is no longer eligible for severance under the company’s Income Continuation Plan. The structured succession plan and continuity in executive leadership provide operational stability during a period of evolving retail dynamics, reinforcing confidence in strategic execution and long-term shareholder value creation.
Target Corporation (NYSE:TGT) is a major American general merchandise retailer headquartered in Minneapolis, Minnesota. Founded in 1962, the company operates large-format stores offering a broad assortment of groceries, apparel, home goods, and discretionary merchandise, positioning it to compete across value and style-driven segments of the retail market.
5. Ross Stores, Inc. (NASDAQ:ROST)
On February 23, Bernstein raised its price target for Ross Stores, Inc. (NASDAQ:ROST) to $180 from $170 while maintaining a Market Perform rating as part of a fourth-quarter preview for off-price retailers. The firm cited very strong holiday trends across the segment, supported by real-time data showing positive and accelerating foot traffic as well as robust card spending throughout the quarter.
During the third quarter of 2025, Ross Stores, Inc. (NASDAQ:ROST) reported total sales growth of 10% to $5.6 billion, with comparable store sales increasing 7%. Operating margin reached 11.6% despite a $0.05 per share headwind from tariff-related costs. Earnings per share were $1.58, up from $1.48 in the prior year. For the first nine months, earnings per share totaled $4.61 on sales of $16.1 billion, with comparable store sales rising 3% year over year. Inventory levels increased 9% overall and 15% per store to support anticipated holiday demand. The company opened 36 new Ross locations and four DD’s Discounts stores during the quarter, completing the 2025 expansion with 90 new stores. For the fourth quarter, Ross expects comparable sales growth of 3%–4% and earnings per share of $1.77–$1.85, with minimal tariff-related costs and an estimated full-year tariff impact of approximately $0.15 per share. Strong traffic trends, disciplined cost management, and continued unit growth reinforce Ross’s resilience within value-focused retail and support a constructive investment outlook.
Ross Stores, Inc. (NASDAQ:ROST) operates the Ross Dress for Less chain, offering branded apparel and home fashions at discounted prices through a high-volume, opportunistic purchasing model. Founded in 1950 and headquartered in Dublin, California, the company leverages inventory flexibility and cost discipline to drive consistent profitability.
4. The TJX Companies, Inc. (NYSE:TJX)
On February 23, The TJX Companies, Inc. (NYSE:TJX) saw JPMorgan raise its price target to $173 from $154 while maintaining an Overweight rating as part of an earnings preview across the retail sector.
During the third quarter of fiscal 2026, The TJX Companies, Inc. (NYSE:TJX) delivered strong financial performance, with comparable sales increasing 5%, driven by higher average basket size and increased customer transactions. Pre-tax profit margin expanded to 12.7%, representing a 40 basis point year-over-year improvement, while gross margin rose 100 basis points due to lower freight costs and operating efficiencies. Diluted earnings per share increased 12% to $1.28. Segment results were robust, with Marmaxx reporting 6% comparable sales growth and a 14.9% profit margin, and HomeGoods delivering 5% comparable sales growth and a 13.5% profit margin. TJX Canada and TJX International achieved comparable sales increases of 8% and 3%, respectively. The company returned $1.1 billion to shareholders during the quarter through dividends and share repurchases.
For the fourth quarter, management expects comparable sales growth of 2%–3% and earnings per share of $1.33–$1.36. Full-year guidance was raised to reflect anticipated 4% comparable sales growth and consolidated sales between $59.7 billion and $59.9 billion, with a projected pre-tax profit margin of 11.6%. Sustained traffic growth, margin expansion, and disciplined capital return reinforce The TJX Companies, Inc. (NYSE:TJX)’s resilience within discretionary retail and strengthen the investment case for continued share appreciation.
Founded in 1976 and headquartered in Framingham, Massachusetts, The TJX Companies, Inc. (NYSE:TJX) is a global off-price retailer offering apparel and home fashions at discounted prices through banners including T.J. Maxx, Marshalls, HomeGoods, Sierra, and TK Maxx. The company stands 4th in the list of 12 best retail stocks to buy according to analysts.
3. Costco Wholesale Corporation (NASDAQ:COST)
On February 20, Costco Wholesale Corporation (NASDAQ:COST) saw Citi analyst Steven Zaccone raise the firm’s price target to $1,000 from $990 while maintaining a Neutral rating, citing a modest same-store sales and earnings beat in fiscal second-quarter results.
Similarly, on February 10, Evercore ISI analyst Greg Melich raised his price target on Costco to $1,050 from $1,025 and reiterated an Outperform rating.
During the company’s first-quarter fiscal 2026 earnings call, net income totaled $2.001 billion, or $4.50 per diluted share, compared to $1.798 billion, or $4.04 per diluted share, in the prior year. Excluding certain tax-related items, net income and diluted EPS increased 13.6%. Net sales rose 8.2% year over year to $65.98 billion, while comparable sales increased 6.4%, including a 20.5% rise in digitally enabled comparable sales. Membership fee income grew 14% to $1.329 billion, reflecting membership growth and upgrades to higher-tier executive memberships. Costco Wholesale Corporation (NASDAQ:COST) opened eight new warehouses during the quarter, bringing the total to 921 locations globally, and plans to add more than 30 net new warehouses annually in the coming years. Strong comparable sales growth, expanding membership income, and continued warehouse expansion underpin durable earnings growth and support a favorable long-term investment outlook.
Costco Wholesale Corporation (NASDAQ:COST), founded in 1983 and headquartered in Issaquah, Washington, operates a global chain of membership-only warehouse clubs.
2. Walmart Inc. (NASDAQ:WMT)
On February 20, Walmart Inc. (NASDAQ:WMT) saw TD Cowen raise its price target to $145 from $136 while reiterating a Buy rating. The firm emphasized Walmart’s positioning as a leader in AI-enabled retail, noting that the evolution toward conversational commerce- where customers articulate intentions and goals rather than relying on keyword searches- could structurally reshape shopping behavior and reinforce Walmart’s competitive advantages at scale.
The prior day, Walmart Inc. (NASDAQ:WMT) provided full-year fiscal 2027 guidance calling for constant-currency sales growth of 3.5%–4.5%, operating income growth of 6%–8%, and earnings per share of $2.75–$2.85. Management indicated that e-commerce will remain the principal growth engine and that margins are expected to expand due to a more favorable business mix, automation-driven productivity gains, and easing merchandise headwinds, while reiterating an intent to outperform these initial conservative assumptions. For the first quarter, Walmart expects constant-currency sales growth of 3.5%–4.5%, operating income growth of 4%–6%, and EPS of $0.63–$0.65. Management also noted that if prevailing foreign exchange rates persist, first-quarter reported sales would benefit by approximately 150 basis points and operating income by roughly 200 basis points, with full-year FX tailwinds of approximately 70 basis points to sales and 120 basis points to operating income. Fiscal 2026 operating cash flow reached $42 billion, while free cash flow grew 18% year over year.
Planned fiscal 2027 capital expenditures are approximately 3.5% of sales, reflecting peak investment in automation and store remodels, and the company authorized a new $30 billion share repurchase program. Global e-commerce increased approximately 24% for the quarter and nearly 25% for the year, surpassing $150 billion in annual sales for the first time, with fourth-quarter e-commerce representing approximately 23% of total sales, an increase of 550 basis points over two years. Walmart Inc. (NASDAQ:WMT)’s U.S. e-commerce grew 27% in the fourth quarter. The combination of accelerating digital penetration, expanding margins, strong cash generation, and disciplined capital return supports a compelling long-term investment thesis centered on omnichannel scale and technology-driven productivity.
Walmart Inc. (NASDAQ:WMT), founded in 1962, is an American multinational omnichannel retailer operating more than 10,750 stores and e-commerce platforms across 19 countries under multiple brand names. Its scale, supply chain sophistication, and increasing integration of data and automation technologies position it to capitalize on structural shifts toward digital retail and AI-enhanced commerce.
1. Amazon.com, Inc. (NASDAQ:AMZN)
On February 20, Amazon.com, Inc. (NASDAQ:AMZN) surpassed Walmart as the largest U.S. company by annual revenue, generating approximately $716.9 billion in sales compared to Walmart’s $713.2 billion for the comparable period.
On February 5, Amazon.com, Inc. (NASDAQ:AMZN) reported fourth-quarter 2025 worldwide revenue of $213.4 billion, representing 12% year-over-year growth excluding foreign exchange impacts. Operating income reached $25.0 billion, while trailing twelve-month free cash flow totaled $11.2 billion. Full-year operating cash flow increased 20% year over year to $139.5 billion. Momentum in artificial intelligence offerings accelerated, with Amazon Bedrock achieving a multibillion-dollar annualized revenue run rate and customer spending increasing 60% quarter over quarter. Developers utilizing Curo expanded by more than 150% sequentially, and agent-based products—including Curo, Quick for knowledge workers, and Frontier agents—demonstrated rapid adoption. The company plans approximately $200 billion in capital expenditures, primarily directed toward AWS infrastructure expansion.
Over the past 12 months, Amazon.com, Inc. (NASDAQ:AMZN) added approximately 3.99 gigawatts of power capacity, including more than one gigawatt in the fourth quarter, with management indicating that newly installed capacity is being monetized efficiently. Revenue leadership, accelerating AI monetization, and substantial infrastructure investment reinforce Amazon’s positioning across retail, cloud computing, and digital advertising, strengthening the long-term growth profile.
Founded in 1994 and headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) is widely classified as an internet retail and consumer discretionary company, while also operating a leading cloud computing platform through AWS and a high-margin advertising business. Its diversified model and scale advantages support sustained competitive leadership.
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