Should I invest in large retail chains or smaller retailers?

Generally, larger retailers make more stable investments. National brands with steady cash flow and growing sales tend to hold up better in difficult times than smaller retailers and are also more resilient to changes in the retail landscape. Having said that, investing in rapidly growing smaller retailers can be a solid growth strategy, but it's important to recognize that it's a higher-risk approach as well.

Should I invest in physical stores or e-commerce retail stocks?

There's no perfect answer, as both can be excellent investments. E-commerce currently makes up about 20% of U.S. retail sales, so there's clearly room for long-term growth. On the other hand, many brick-and-mortar retailers have competitive advantages of their own, and some have even successfully leveraged their omnichannel strategies to effectively compete with e-commerce companies.

What are the retail stocks with the highest dividends?

As a general rule, if you're looking for higher dividends, you should look for the more mature companies in an industry, and retail is no exception. However, a dividend yield that seems too good to be true can be a warning sign that something is amiss with a business.

What is the best retail stock?

It's tough to call one retail stock the best. However, Amazon has grown into a dominant force in the retail industry. The company's immense scale, vast logistics network, and popular Prime membership program make it tough to beat.

What is a publicly traded retailer?

A publicly traded retailer is a retail company with shares listed on a major public stock exchange. When a retailer is publicly traded, shares can be bought and sold by investors.

Is investing in retail good?

The retail industry is essential, but not all retailers are created equal. When considering a retail stock, look for those with competitive advantages, like a strong brand or economies of scale.

7 Best Retail Stocks for 2026 and How to Invest

By Matthew Frankel, CFP – Updated Sep 15, 2026 at 12:50 PM EST | Fact-checked by Robin Hartill, CFP

Key Points

Amazon leads e-commerce with a growing AWS profit, essential for online retail investment strategies.
Home Depot retains growth potential in a tough economy with a slow U.S. sales increase at 0.4% year over year.
Ulta Beauty shows strong resilience with a 5.3% rise in comparable sales, highlighting attractiveness in retail stocks.

Retail stocks give you exposure to how consumers spend on essentials, discretionary purchases, and everything in between. The past few years have been a stress test for the industry: pandemic-era demand shifts, supply chain issues, and inflation all reshaped the landscape. Now, we're seeing consumer demand start to suffer due to economic uncertainty.

So, what are the best retail stocks to buy now? Although this isn't an exhaustive list, here are four retail leaders worth considering, plus what to know before investing.

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7 top retail stocks for 2026

There are hundreds of publicly traded retailers, but these seven look like excellent long-term buys for investors.

Ticker Information Table
Company ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
NASDAQ:AMZN	$2.7 trillion	0.00%	Multiline Retail
NYSE:HD	$304.8 billion	3.04%	Specialty Retail
NASDAQ:ULTA	$23.3 billion	0.00%	Specialty Retail
NASDAQ:WMT	$857.6 billion	0.90%	Food and Staples Retailing
NASDAQ:CASY	$21.7 billion	0.40%	Food and Staples Retailing
NYSE:TJX	$137.1 billion	1.45%	Specialty Retail
NASDAQ:COST	$399.7 billion	0.61%	Food and Staples Retailing

Data as of Sep 16, 2026. Showing 7 of 7 total entries.

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1. Amazon

NASDAQ: AMZN

Amazon

Premium Feature

Moneyball Superscore

90/100

Today's Change

(-2.02%) $-5.12

Current Price

$248.42

Key Data Points

Market Cap

$2.7T

Day's Range

$247.22 - $253.27

52wk Range

$196.00 - $287.20

Volume

36.3M

Avg Vol

46.8M

Gross Margin

50.77%

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As the preeminent e-commerce retailer, Amazon (AMZN -2.02%) got its start selling books and now operates a marketplace enabling the online buying and selling of almost everything. Amazon also owns Whole Foods Market, which gives it a ready-made network of brick-and-mortar retail stores to further engage customers.

In addition to growing its business, Amazon is focused on boosting productivity and trimming expenses. The bottom line has benefited tremendously. That's been mainly fueled by Amazon Web Services (AWS), the leading cloud platform, which is the fastest-growing (and most profitable) part of its business.

With its immense scale, the online retail giant is well-positioned to lead the e-commerce market in the long run. Smaller players without Amazon's scale and logistical muscle have struggled to compete, and that isn't likely to change anytime soon.

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2. Home Depot

NYSE: HD

Home Depot

Premium Feature

Moneyball Superscore

74/100

Today's Change

(-1.73%) $-5.39

Current Price

$305.48

Key Data Points

Market Cap

$305B

Day's Range

$304.32 - $311.13

52wk Range

$289.10 - $426.75

Volume

4.5M

Avg Vol

4.2M

Gross Margin

31.22%

Dividend Yield

3.04%

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The home improvement retailer is best known for its big box warehouse stores and extensive inventory. Serving both do-it-yourself homeowners and professional contractors, Home Depot (HD -1.73%) has consistently expanded both sales and earnings over the years. The company has also done an excellent job with omnichannel retail, featuring options such as ship-to-store and in-store pickup for mobile orders.

Home Depot's sales growth has been weak for several years, reflecting slowing consumer spending after the surge in demand for renovation and remodeling projects during the pandemic. In the second quarter of 2026, Home Depot's comparable sales in the United States increased by just 1.3% year over year. Consumers continue to spend on smaller projects, but spending in big-ticket categories is weakening.

Elevated interest rates are a significant contributor to this lull, as they erode households' spending power and make it more difficult to tap home equity to fund costly projects. However, in the long run, the company has ample room to grow within a fragmented industry.

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3. Ulta Beauty

NASDAQ: ULTA

Ulta Beauty

Premium Feature

Moneyball Superscore

75/100

Today's Change

(-0.79%) $-4.33

Current Price

$544.32

Key Data Points

Market Cap

$23B

Day's Range

$537.75 - $555.59

52wk Range

$443.60 - $714.97

Volume

591.6K

Avg Vol

665.7K

Gross Margin

39.32%

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Tapping into the trend of providing experiences that lure shoppers into stores, Ulta Beauty (ULTA -0.79%) offers in-store salon services. The concept has taken off, and its stores were attracting a large number of customers before the pandemic struck.

Ulta's sales remain strong in a challenging environment for discretionary spending, with net sales up approximately 9% year over year in the latest quarter. Some of the growth stemmed from new store openings, but comparable sales increased by about 4%, an impressive figure given the prevailing economic uncertainty.

Total revenue is expected to exceed $13 billion for the current fiscal year. A recession would likely hurt sales and profits in the short term, but Ulta's long-term growth prospects remain intact.

With all of that in mind, Ulta could be well-positioned to thrive as inflation continues to cool and interest rates decline. Management appears to believe the stock is a bargain and spent nearly $900 million on buybacks in 2025 and an additional $791 million in the first half of 2026 alone.

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4. Walmart

NASDAQ: WMT

Walmart

Today's Change

(-0.91%) $-0.99

Current Price

$108.09

Key Data Points

Market Cap

$858B

Day's Range

$107.86 - $109.24

52wk Range

$98.88 - $135.16

Volume

19.3M

Avg Vol

24.2M

Gross Margin

25.23%

Dividend Yield

0.90%

Loading company_card...

Walmart (NYSE:WMT) is a retail business that works in good times and bad. It's always a home for bargain-seekers, but it can do even better in times of inflation and economic weakness, when shoppers are compelled to cut back on spending. In fact, Walmart's resilient business model enabled it to be the top-performing S&P 500 stock during the 2008 financial crisis.

Not only is the business resilient, but Walmart has done a fantastic job of building out its omnichannel platform. Its pickup and delivery options are among the best-run in the industry, and the company's results continue to show impressive growth for a mature company. In fact, in the latest fiscal quarter, Walmart's revenue grew by about 6% year over year, led by 23% growth in global e-commerce volume.

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5. Casey's General Stores

Casey's General Stores (CASY -5.54%) is a leading operator of convenience stores, with about 2,900 locations in 19 states. It offers a variety of groceries, fresh foods, and self-service fuel.

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NASDAQ: CASY

Casey's General Stores

Premium Feature

Moneyball Superscore

83/100

Today's Change

(-5.54%) $-34.47

Current Price

$587.14

Key Data Points

Market Cap

$22B

Day's Range

$586.42 - $619.79

52wk Range

$497.38 - $927.85

Volume

823.8K

Avg Vol

472.5K

Gross Margin

21.37%

Dividend Yield

0.40%

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One interesting point about Casey's is that it focuses on rural areas where it is generally the only store of its kind. Casey's has raised its dividend for 26 consecutive years and has steadily grown earnings. It has an excellent balance sheet and continues to grow its footprint, and there's no reason to think that will change anytime soon.

In its most recent quarter, Casey's same-store sales grew by 3.2%, inside-store (non-fuel) margins increased by about 30 basis points, and fuel gross profit increased by about 20%.

6. TJX Companies

Best known for its namesake TJ Maxx off-price clothing and home accessories retail store, TJX Companies (TJX -1.10%) is also the parent company of the discount brands Marshalls and HomeGoods.

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NYSE: TJX

TJX Companies

Premium Feature

Moneyball Superscore

76/100

Today's Change

(-1.10%) $-1.39

Current Price

$124.60

Key Data Points

Market Cap

$137B

Day's Range

$123.84 - $127.03

52wk Range

$123.84 - $170.00

Volume

11.1M

Avg Vol

6.5M

Gross Margin

31.87%

Dividend Yield

1.45%

Loading company_card...

Its discount-oriented nature and the "treasure hunt" feel of its shopping experience help make its stores resistant to e-commerce competitors and give it an advantage during recessions or tough financial times. Management sees room for many more stores in the U.S. and internationally and does an excellent job of prioritizing capital returns to shareholders, including a rising dividend and opportunistic buybacks.

In the latest quarter, TJX reported comparable sales growth of 4%, a good reflection of how well the company is positioned even when consumers feel a bit squeezed. Margins improved significantly, and adjusted EPS grew 11% year over year.

7. Costco

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NASDAQ: COST

Costco Wholesale

Premium Feature

Moneyball Superscore

81/100

Today's Change

(-1.91%) $-17.56

Current Price

$901.35

Key Data Points

Market Cap

$400B

Day's Range

$900.25 - $916.92

52wk Range

$844.06 - $1096.50

Volume

2.2M

Avg Vol

2.2M

Gross Margin

12.88%

Dividend Yield

0.61%

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Costco (COST -1.91%) doesn't need much of an introduction to most U.S. consumers. It is by far the largest membership-based warehouse club retailer, with massive stores offering groceries, medications, home accessories, and much more. The company operates 924 warehouses, about two-thirds of which are in the United States.

Memberships are Costco's primary profit engine. They cost $65 to $130 per year and create a sticky, reliable recurring revenue stream, with roughly 90% membership renewal rates. Costco's revenue has steadily grown at roughly a 9% annualized rate in recent years, and there could be many years of growth still ahead.

Costco reports its sales on a monthly basis. In August 2026, U.S. comparable-store sales (excluding gasoline) grew 5.6% year over year.

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How to buy retail stocks

The process of buying retail stocks is rather straightforward:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at [our favorite brokers and trading platforms](https://www.fool.com/money/buying-stocks/) to find the right one for you.
Search for X: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in retail stocks

Retail stocks can be a great way to profit from consumer strength and the latest trends. However, the main risk factor to be aware of is that retail can be highly cyclical, especially in discretionary retail (companies that sell items people want rather than things they need).

There's also a significant risk that e-commerce will disrupt brick-and-mortar (store-based) retailers. In fact, several once-great retail brands have gone out of business over the past decade, with e-commerce competition being a primary factor.

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Methodology: How these stocks were chosen

The main idea was to find retail stocks that are not only excellent businesses right now but also likely to be durable no matter what the economy or stock market does. So, one of the most important factors was to select stocks with an identifiable competitive advantage, or moat. For example, Costco and Amazon have scale advantages and unmatched customer loyalty, and Casey's has little or no competition in the markets where it operates.

I also differentiated the list across several retail models (warehouse clubs, home improvement, e-commerce, etc.), so there isn't too much reliance on any one type. A diverse mix of resilient retailers can be an excellent way to add exposure to a long-term investment portfolio.

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The bottom line

It's always fun to invest in companies you know and love, and retail stocks often fit the bill. Focus on the retailers with the strongest business fundamentals -- low debt levels, healthy cash flows, and strong competitive positions -- to give yourself the best chance to make money for your investment portfolio.

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Investing in retail stocks FAQ

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About the Author

Matt Frankel, CFP®, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelUSC

Matt Frankel, CFP has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Home Depot, Ulta Beauty, and Walmart. The Motley Fool has a disclosure policy.

7 Best Retail Stocks for 2026 and How to Invest

Key Points

7 top retail stocks for 2026

1. Amazon

Key Data Points

2. Home Depot

Key Data Points

3. Ulta Beauty

Key Data Points

4. Walmart

Key Data Points

5. Casey's General Stores

Key Data Points

6. TJX Companies

Key Data Points

7. Costco

Key Data Points

How to buy retail stocks

Benefits and risks of investing in retail stocks

Methodology: How these stocks were chosen

The bottom line

Related investing topics

What to Invest In Right Now, September 2026

Best Consumer Staples Stocks to Buy in 2026 and How to Invest in Them

Best Consumer Staples Stocks to Buy in 2026 and How to Invest in Them

Artificial Intelligence: How AI Is Changing the Retail Industry

Investing in retail stocks FAQ

Should I invest in large retail chains or smaller retailers?

Should I invest in large retail chains or smaller retailers?

Should I invest in physical stores or e-commerce retail stocks?

Should I invest in physical stores or e-commerce retail stocks?

What are the retail stocks with the highest dividends?

What are the retail stocks with the highest dividends?

What is the best retail stock?

What is the best retail stock?

What is a publicly traded retailer?

What is a publicly traded retailer?

Is investing in retail good?

Is investing in retail good?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

7. Costco

Key Data Points

How to buy retail stocks

Benefits and risks of investing in retail stocks

Methodology: How these stocks were chosen

The bottom line

What to Invest In Right Now, September 2026

Best Consumer Staples Stocks to Buy in 2026 and How to Invest in Them

Best Consumer Staples Stocks to Buy in 2026 and How to Invest in Them

Artificial Intelligence: How AI Is Changing the Retail Industry

Investing in retail stocks FAQ

Should I invest in large retail chains or smaller retailers?

Should I invest in large retail chains or smaller retailers?

Should I invest in physical stores or e-commerce retail stocks?

Should I invest in physical stores or e-commerce retail stocks?

What are the retail stocks with the highest dividends?

What are the retail stocks with the highest dividends?

What is the best retail stock?

What is the best retail stock?

What is a publicly traded retailer?

What is a publicly traded retailer?

Is investing in retail good?

Is investing in retail good?

5. Casey's General Stores

6. TJX Companies