Seasonally adjusted sales numbers for retail and food services totaled $715.4 billion in May, according to the Census Bureau, a 3.3% increase year over year. June’s numbers, which are slated to be released on July 17, are expected to show a month-over-month gain of between 0.1% and 0.3%. Core retail sales, which excludes autos, gasoline, building materials and food, may grow even faster with Bank of America estimating a strong 0.9% increase.
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Despite challenges like high interest rates, tariff uncertainties and an inflation rate that remains stubbornly above the Federal Reserve’s target, consumer spending is proving very resilient. A strong labor market, low unemployment and slow but steady wage growth seem to be supporting the consumer and allowing for robust spending even in this uncertain economy.
Concerns about future tariffs may also be helping retail sales. Tariff anticipation has prompted some preemptive buying — especially in durable goods — as individuals and businesses seek to avoid the price hikes they fear President Donald Trump’s trade war may eventually bring. This pull-forward demand should continue until the president’s tariff policy becomes more certain.
Another bright spot for retail has been the incredible strength in e-commerce. Online sales in May were up over 8% year over year and are expected to keep climbing.
It’s clear that retail is a growing business, and modern retailers are well able to adapt and innovate in our dynamic economy and this rapidly changing retail environment. In short, retail — whether in the consumer discretionary or the consumer staples sector — is an industry no investor can afford to ignore.
The retailers and discount retailers on the following list merit consideration by any investor interested in retail. It includes some of the biggest and best names in the industry, and all of them are taking full advantage of the ongoing trend toward online shopping. Adding retail exposure to your portfolio is a smart move, and this timely list is a great place to start your research:
| Retail Stock | Market Capitalization* | P/E Ratio (TTM)** |
| Amazon.com Inc. (ticker: AMZN) | $2.4 trillion | 36.4 |
| Home Depot Inc. (HD) | $353 billion | 24.1 |
| Burlington Stores Inc. (BURL) | $15.8 billion | 30.1 |
| Costco Wholesale Corp. (COST) | $424 billion | 54.3 |
| Dollar General Corp. (DG) | $25 billion | 21.3 |
| Ross Stores Inc. (ROST) | $42 billion | 20.2 |
| Walmart Inc. (WMT) | $757 billion | 40.6 |
*As of July 15 close.** Trailing-twelve-month price-earnings ratio.
Amazon.com Inc. (AMZN)
Amazon’s Prime Day 2025 promotion ran from July 8 to July 11, and it was a success. Without releasing specific numbers, the company reported its biggest Prime Day ever, with more sales than any four-day period that included a Prime Day in its history. According to Adobe Analytics, that translates to estimated sales of over $24 billion, which is a more than 30% year-over-year gain over the last Prime Day event. To put that number in perspective, that’s more than double the company’s Black Friday 2024 sales.
With a market cap of $2.4 trillion, AMZN is the world’s largest retailer by revenue. It’s a retail powerhouse, to be sure, but it’s also a leading technology company. The company’s Amazon Web Services, or AWS, division is an industry-leading cloud computing platform, offering computing power, cloud storage and artificial intelligence (AI) driven machine learning to large and small businesses, high-tech developers and governments for building and scaling enterprise applications.
The bottom line is this: No retail tech investor should be without exposure to this mega-cap stock.
Home Depot Inc. (HD)
HD is a $353 billion hardware, home improvement and building materials retailer with about 2,000 big-box stores in the U.S. and another roughly 300 locations in Canada and Mexico. It’s a bellwether stock all investors should consider owning.
HD sells building materials, lawn and garden equipment, large and small appliances, tools, home improvement products, water heaters, cabinets, air conditioning systems and just about anything else a homeowner or building contractor could need. It also rents trucks, trailers, tools and equipment for use by the day.
In addition to its brick-and-mortar outlets, HD has a thriving online business that operates through its mobile application or its websites which include homedepot.com, blinds.com, srsdistribution.com, heritagelandscapesupplygroup.com and heritagepoolsupplygroup.com.
This retailer regularly generates over $40 billion a quarter in revenue and has a current dividend yield of 2.5%.
Burlington Stores Inc. (BURL)
In a research report dated May 30, BofA Equity Analyst Lorraine Hutchinson reiterated the “buy” rating she maintains on BURL, setting a $350 price target for the stock. If BURL trades up to that target, it would mean 39% appreciation from the stock’s July 15 closing price of $251.90.
Hutchinson’s recommendation and aggressive price target is based on the fact that BURL has embarked on a large-scale transformation grounded in better execution, discount store fundamentals and a focus on smaller stores. She believes the stock is well-positioned for profit margin improvement and stock price outperformance over the long run.
BURL is a $15.8 billion discount retailer with over 1,000 locations in the U.S. and Puerto Rico. It offers branded and off-brand merchandise, including apparel, accessories, shoes, toys, gifts and outerwear. The company is named after the town of Burlington, New Jersey, where it was founded in 1924 as Burlington Coat Factory and where it still has its headquarters.
BURL was late in embracing e-commerce, but is now making headway with its website burlington.com where customers can shop, get updated on the latest deals, find store locations and take advantage of curbside and home delivery.
Costco Wholesale Corp. (COST)
Any credible list of the best retail stocks will include COST. This company has been a leader in the big-box warehouse retail space for 50 years and shows no signs of slowing down. Many Wall Street analysts agree. Morgan Stanley has an “outperform” rating on the stock, while BofA Securities and Loop Capital both maintain a “buy” rating on the name.
COST operates warehouse-style membership clubs in over 900 locations in the U.S. and around the world. Membership fees start at about $65 and top out at about $130 annually, and the company’s 133 million members worldwide seem happy to pay them. In fiscal 2024, club dues accounted for over $4.8 billion in company revenue.
Costco stores offer groceries, apparel, electronics, books, health and beauty products and much more. It encourages its customers to save money by buying in bulk, which is good for sales and good for shoppers.
The stock pays a modest 0.5% dividend.
Dollar General Corp. (DG)
On June 2, DG released financial results for its 2025 fiscal first quarter, and the numbers were encouraging. The company’s sales and earnings rose 5% and 8% respectively on same-store sales growth of 2.4%. Management also provided guidance pointing to 2025 sales growth of between 3.7% and 4.7%.
Investors may be surprised to learn that DG has over 20,000 locations in urban population centers around the U.S. This $25 billion retailer is a premier name in the discount retail space. The company’s locations are designed to be part convenience store and part department store. They offer snacks and cold drinks as well as household goods, casual apparel, health and beauty items, kitchen items and more. Some locations even sell beer, wine, tobacco products and lottery tickets.
The company drives customers to its stores with the intelligent use of its website, where shoppers can find exclusive coupons, view weekly and daily specials and, in many locations, take advantage of home delivery and in-store pick up.
The stock closed at $113.22 on July 15, but BofA Equity Research Analyst Robert Ohmes thinks DG is selling at a discount to its peers. Ohmes has a “buy” rating on the stock with a $135 price objective, which, if it eventually trades at those levels, would mean 19% upside from there.
Ross Stores Inc. (ROST)
On July 2, Jefferies Securities upgraded ROST from “hold” to “buy.” Jefferies joins BofA Securities and Loop Capital, who also have a “buy” on the name. Barclays, Wells Fargo and JPMorgan are fairly bullish on ROST as well. Those firms all have the stock rated “outperform.”
ROST is a discount and closeout retailer known for selling off-priced, but high-quality, apparel and home fashions at its brick-and-mortar stores in the U.S. The company’s target market is middle-income consumers who are both fashion-conscious and price-conscious. They sell clothes, accessories, footwear and small home furnishings at discounts of 20% to 60% in a pleasant retail atmosphere.
ROST has about 1,700 locations and is reporting slow but steady increases in foot traffic to its stores. The company purposefully does not offer an online shopping option, but that does not mean it is not using mobile apps and the internet to drive consumers into its stores. The company’s website provides information on promotions, current inventory and store locations.
Walmart Inc. (WMT)
Walmart trails only Amazon in retail revenue. This blue-chip stock was founded 80 years ago by retail pioneer Sam Walton and has been going strong ever since.
WMT operates in the U.S. through its Walmart USA segment, it runs its global operations through its Walmart International division and competes with Costco in the warehouse club space through its Sam’s Club segment. All in, WMT has more than 10,600 stores, including 4,600 in the U.S.
This company has a store size to fit all markets. It has large-scale supercenters, small neighborhood markets and intermediate stores that fit nicely in between.
WMT boasts a market cap of over $757 billion and pays a small but reliable dividend of 1%. The company has increased its annual dividend every year for 52 consecutive years.
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7 Best Retail Stocks to Buy for 2025 originally appeared on usnews.com
Update 07/16/25: This story was previously published at an earlier date and has been updated with new information.
