Sectors & IndustriesConsumer CyclicalSpecialty Retail

Best Retail Stocks to Buy Now (2026)

Top retail stocks in 2026 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:

Betterware De Mexico Sapi De CV (NYSE:BWMX) is the #1 top retail stock out of 51 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 Betterware De Mexico Sapi De CV (NYSE:BWMX) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.

Betterware De Mexico Sapi De CV (NYSE:BWMX) has a Due Diligence Score of 43, which is 14 points higher than the retail industry average of 29.

BWMX passed 16 out of 38 due diligence checks and has strong fundamentals. Betterware De Mexico Sapi De CV has seen its stock return 137.12% over the past year, overperforming other retail stocks by 147 percentage points.

Betterware De Mexico Sapi De CV has an average 1 year price target of $30.50, an upside of 68.14% from Betterware De Mexico Sapi De CV's current stock price of $18.14.

Betterware De Mexico Sapi De CV stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Betterware De Mexico Sapi De CV, 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.

Murphy Usa (NYSE:MUSA) is the #2 top retail stock out of 51 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 Murphy Usa (NYSE:MUSA) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Murphy Usa (NYSE:MUSA) has a Due Diligence Score of 39, which is 10 points higher than the retail industry average of 29.

MUSA passed 14 out of 38 due diligence checks and has average fundamentals. Murphy Usa has seen its stock return 27.74% over the past year, overperforming other retail stocks by 38 percentage points.

Murphy Usa has an average 1 year price target of $525.20, a downside of -2.7% from Murphy Usa's current stock price of $539.77.

Murphy Usa stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Murphy Usa, 60% have issued a Strong Buy rating, 0% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Five Below (NASDAQ:FIVE) is the #3 top retail stock out of 51 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 Five Below (NASDAQ:FIVE) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: B.

Five Below (NASDAQ:FIVE) has a Due Diligence Score of 49, which is 20 points higher than the retail industry average of 29.

FIVE passed 16 out of 33 due diligence checks and has strong fundamentals. Five Below has seen its stock return 58.5% over the past year, overperforming other retail stocks by 69 percentage points.

Five Below has an average 1 year price target of $254.63, an upside of 32.5% from Five Below's current stock price of $192.17.

Five Below stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Five Below, 52.63% have issued a Strong Buy rating, 15.79% have issued a Buy, 31.58% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 17 retail stocks that have issued dividends in the past year, the 3 retail stocks with the highest dividend yields are:

Gmex Robotics (NASDAQ:GMEX) has an annual dividend yield of 572.73%, which is 539 percentage points higher than the retail industry average of 34.18%.

Gmex Robotics's dividend payout ratio of -8.2% indicates that its high dividend yield might not be sustainable for the long-term.

Best Buy Co (NYSE:BBY) has an annual dividend yield of 5.37%, which is -29 percentage points lower than the retail industry average of 34.18%. Best Buy Co's dividend payout is stable, having never dropped by more than 10% 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 75.1% indicates that its high dividend yield is sustainable for the long-term.

Betterware De Mexico Sapi De CV (NYSE:BWMX) has an annual dividend yield of 4.66%, which is -30 percentage points lower than the retail industry average of 34.18%. Betterware De Mexico Sapi De CV's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Betterware De Mexico Sapi De CV's dividend has shown consistent growth over the last 10 years.

Retail stocks were down -0.52% in the last day, and down -0.61% over the last week. Five Below was the among the top losers in the specialty retail industry, dropping -13.78% yesterday.

Five Below shares are trading lower. The company reported Q1 financial results.

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:

Sally Beauty Holdings (NYSE:SBH) 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.

Sally Beauty Holdings has a valuation score of 71, which is 46 points higher than the retail industry average of 25. It passed 5 out of 7 valuation due diligence checks.

Sally Beauty Holdings's stock has gained 31.5% in the past year. It has overperformed other stocks in the retail industry by 42 percentage points.

Bath & Body Works (NYSE:BBWI) 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.

Bath & Body Works has a valuation score of 29, which is 4 points higher than the retail industry average of 25. It passed 2 out of 7 valuation due diligence checks.

Bath & Body Works's stock has dropped -33.65% in the past year. It has underperformed other stocks in the retail industry by -24 percentage points.

Petco Health & Wellness Company (NASDAQ:WOOF) is the third most undervalued retail stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Petco Health & Wellness Company has a valuation score of 29, which is 4 points higher than the retail industry average of 25. It passed 2 out of 7 valuation due diligence checks.

Petco Health & Wellness Company's stock has dropped -19.52% in the past year. It has underperformed other stocks in the retail industry by -10 percentage points.

41.94% of retail stocks rated by analysts are a strong buy right now. On average, analysts expect retail stocks to rise by 22.04% over the next year.

2.7% of retail stocks have a Zen Rating of A (Strong Buy), 10.81% of retail stocks are rated B (Buy), 70.27% are rated C (Hold), 13.51% are rated D (Sell), and 2.7% are rated F (Strong Sell).