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: B, Sentiment: C, Safety: B, Financials: B, and AI: C.

Betterware De Mexico Sapi De CV (NYSE:BWMX) has a Due Diligence Score of 39, which is 9 points higher than the retail industry average of 30.

BWMX passed 15 out of 38 due diligence checks and has average fundamentals. Betterware De Mexico Sapi De CV has seen its stock return 80% over the past year, overperforming other retail stocks by 79 percentage points.

Betterware De Mexico Sapi De CV has an average 1 year price target of $30.50, an upside of 81.22% from Betterware De Mexico Sapi De CV's current stock price of $16.83.

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 A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Murphy Usa (NYSE:MUSA) is: Value: C, Growth: B, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: C.

Murphy Usa (NYSE:MUSA) has a Due Diligence Score of 31, which is 1 points higher than the retail industry average of 30.

MUSA passed 11 out of 38 due diligence checks and has average fundamentals. Murphy Usa has seen its stock return 19.74% over the past year, overperforming other retail stocks by 18 percentage points.

Murphy Usa has an average 1 year price target of $525.20, a downside of -12.02% from Murphy Usa's current stock price of $596.92.

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.

Sally Beauty Holdings (NYSE:SBH) 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 Sally Beauty Holdings (NYSE:SBH) is: Value: A, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Sally Beauty Holdings (NYSE:SBH) has a Due Diligence Score of 40, which is 10 points higher than the retail industry average of 30.

SBH passed 12 out of 33 due diligence checks and has average fundamentals. Sally Beauty Holdings has seen its stock return 73.64% over the past year, overperforming other retail stocks by 72 percentage points.

Sally Beauty Holdings has an average 1 year price target of $17.80, an upside of 26.87% from Sally Beauty Holdings's current stock price of $14.03.

Sally Beauty Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Sally Beauty Holdings, 40% have issued a Strong Buy rating, 20% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 20% 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 42.06%, which is 37 percentage points higher than the retail industry average of 4.61%.

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 6.34%, which is 2 percentage points higher than the retail industry average of 4.61%. 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.

Bath & Body Works (NYSE:BBWI) has an annual dividend yield of 4.16%, which is the same as the retail industry average of 4.61%. Bath & Body Works's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Bath & Body Works's dividend has not shown consistent growth over the last 10 years.

Bath & Body Works's dividend payout ratio of 25.6% indicates that its high dividend yield is sustainable for the long-term.

Retail stocks were down -1.55% in the last day, and up 0.38% over the last week.

We couldn't find a catalyst for why retail stocks are down.

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 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 -36.07% in the past year. It has underperformed other stocks in the retail industry by -38 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 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 73.64% in the past year. It has overperformed other stocks in the retail industry by 72 percentage points.

Betterware De Mexico Sapi De CV (NYSE:BWMX) 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.

Betterware De Mexico Sapi De CV has a valuation score of 14, which is -11 points higher than the retail industry average of 25. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates BWMX a Valuation Rating of "B".

Betterware De Mexico Sapi De CV's stock has gained 80% in the past year. It has overperformed other stocks in the retail industry by 79 percentage points.

37.93% of retail stocks rated by analysts are a strong buy right now. On average, analysts expect retail stocks to rise by 13.34% over the next year.

5.71% of retail stocks have a Zen Rating of A (Strong Buy), 2.86% of retail stocks are rated B (Buy), 77.14% are rated C (Hold), 14.29% are rated D (Sell), and 0% are rated F (Strong Sell).