Sectors & IndustriesConsumer CyclicalSpecialty Retail

Best Retail Stocks to Buy Now (2025)

Top retail stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best retail stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best retail stocks to buy right now are:

Build A Bear Workshop (NYSE:BBW) is the #1 top retail stock out of 49 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Build A Bear Workshop (NYSE:BBW) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: C.

Build A Bear Workshop (NYSE:BBW) has a Due Diligence Score of 52, which is 23 points higher than the retail industry average of 29.

BBW passed 20 out of 38 due diligence checks and has strong fundamentals. Build A Bear Workshop has seen its stock return 114.97% over the past year, overperforming other retail stocks by 96 percentage points.

Build A Bear Workshop has an average 1 year price target of $54.67, an upside of 1.52% from Build A Bear Workshop's current stock price of $53.85.

Build A Bear Workshop stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Build A Bear Workshop, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Caseys General Stores (NASDAQ:CASY) is the #2 top retail stock out of 49 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Caseys General Stores (NASDAQ:CASY) is: Value: C, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Caseys General Stores (NASDAQ:CASY) has a Due Diligence Score of 41, which is 12 points higher than the retail industry average of 29.

CASY passed 15 out of 38 due diligence checks and has strong fundamentals. Caseys General Stores has seen its stock return 39.69% over the past year, overperforming other retail stocks by 20 percentage points.

Caseys General Stores has an average 1 year price target of $491.86, a downside of -4.91% from Caseys General Stores's current stock price of $517.23.

Caseys General Stores stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Caseys General Stores, 42.86% have issued a Strong Buy rating, 14.29% have issued a Buy, 42.86% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ulta Beauty (NASDAQ:ULTA) is the #3 top retail stock out of 49 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Ulta Beauty (NASDAQ:ULTA) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: A, and AI: C.

Ulta Beauty (NASDAQ:ULTA) has a Due Diligence Score of 54, which is 25 points higher than the retail industry average of 29.

ULTA passed 17 out of 33 due diligence checks and has strong fundamentals. Ulta Beauty has seen its stock return 22.61% over the past year, overperforming other retail stocks by 3 percentage points.

Ulta Beauty has an average 1 year price target of $467.67, a downside of -2.12% from Ulta Beauty's current stock price of $477.79.

Ulta Beauty stock has a consensus Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Ulta Beauty, 33.33% have issued a Strong Buy rating, 23.81% have issued a Buy, 38.1% have issued a hold, while 0% have issued a Sell rating, and 4.76% have issued a Strong Sell.

Out of 14 retail stocks that have issued dividends in the past year, the 3 retail stocks with the highest dividend yields are:

Tandy Leather Factory (NASDAQ:TLF) has an annual dividend yield of 47.62%, which is 42 percentage points higher than the retail industry average of 5.3%. Tandy Leather Factory's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Tandy Leather Factory's dividend has not shown consistent growth over the last 10 years.

Tandy Leather Factory's dividend payout ratio of 98.7% indicates that its high dividend yield might not be sustainable for the long-term.

Betterware De Mexico Sapi De CV (NYSE:BWMX) has an annual dividend yield of 7.64%, which is 2 percentage points higher than the retail industry average of 5.3%. Betterware De Mexico Sapi De CV's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Betterware De Mexico Sapi De CV's dividend has shown consistent growth over the last 10 years.

Best Buy Co (NYSE:BBY) has an annual dividend yield of 3.94%, which is -1 percentage points lower than the retail industry average of 5.3%. Best Buy Co's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Best Buy Co's dividend has shown consistent growth over the last 10 years.

Best Buy Co's dividend payout ratio of 91.5% indicates that its high dividend yield might not be sustainable for the long-term.

Retail stocks were up 1.58% in the last day, and up 5.56% over the last week. Advance Auto Parts was the among the top gainers in the specialty retail industry, gaining 5.33% yesterday.

Advanced Auto Parts shares are trading higher after Mizuho raised its price target on the stock from $38 to $44.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued retail stocks right now are:

Bath & Body Works (NYSE:BBWI) is the most undervalued retail stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Bath & Body Works has a valuation score of 29, which is 2 points higher than the retail industry average of 27. It passed 2 out of 7 valuation due diligence checks.

Bath & Body Works's stock has dropped -12.1% in the past year. It has underperformed other stocks in the retail industry by -31 percentage points.

Sally Beauty Holdings (NYSE:SBH) is the second most undervalued retail stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Sally Beauty Holdings has a valuation score of 57, which is 30 points higher than the retail industry average of 27. It passed 4 out of 7 valuation due diligence checks.

Sally Beauty Holdings's stock has dropped -7.3% in the past year. It has underperformed other stocks in the retail industry by -27 percentage points.

Odp (NASDAQ:ODP) is the third most undervalued retail stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Odp has a valuation score of 14, which is -13 points higher than the retail industry average of 27. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates ODP a Valuation Rating of "A".

Odp's stock has dropped -50.37% in the past year. It has underperformed other stocks in the retail industry by -70 percentage points.

47.06% of retail stocks rated by analysts are a buy right now. On average, analysts expect retail stocks to rise by 7.8% over the next year.

2.63% of retail stocks have a Zen Rating of A (Strong Buy), 5.26% of retail stocks are rated B (Buy), 71.05% are rated C (Hold), 15.79% are rated D (Sell), and 5.26% are rated F (Strong Sell).