4 Retail Stocks to Boost Your Portfolio as Sales Continue to Soar

Retail sales rebounded in February, the highest level in seven months, after an unexpected decline in January. The jump in February proves that the economy is still on solid ground. The retail sector has shown immense resilience amid continued inflationary pressures and higher costs owing to President Donald Trump’s tariffs.

However, higher consumer spending has been boosting overall retail sales. Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected four stocks, namely, Abercrombie & Fitch ANF, Tapestry TPR, Five Below, Inc. FIVE and Casey's General Stores, Inc. CASY.

These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Retail Sales Jump

Retail sales jumped a solid 0.6% in February, after unexpectedly declining 0.1% in January and surpassing analysts’ expectations of a rise of 0.5%, the Commerce Department said last week. This is the highest level since July 2025.

Retail sales, excluding automobiles, gasoline, building materials and food services, advanced 0.5% in February after gaining 0.2% a month earlier.

February sales were largely driven by a jump in motor vehicle sales. Receipts at auto dealerships rose 1.2% in February after declining 0.7% in the prior month.

Sales at electronics and appliance stores climbed 0.5%, while sales at clothing and clothing accessories outlets gained 2%. Online retail sales grew 0.7%. Sales at sporting goods, hobby, musical instrument and book stores also increased 1.3%.

Retail Sector Poised to Grow

Higher gasoline prices resulting from the ongoing Middle East conflict have raised fears that consumers could cut back on spending in the near term, which could slow spending. However, consumers have been spending aggressively.

The consumer spending metric rose 0.6% in February, proving consumers’ willingness to spend. Also, sales at food services and drinking places, the only services component in the retail sales report, rose 0.4%.

Economists view restaurant sales as a key gauge of household ???finances. The Federal Reserve hasn’t cut interest rates this year, but market participants are confident that the central bank will resume its monetary easing policy in the second half of the year. Lower borrowing rates bode well for the retail sector and the broader economy.

4 Retail Stocks With Upside

Abercrombie & Fitch

Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East. ANF's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, Abercrombie kids and Hollister brands.

Abercrombie & Fitch’s expected earnings growth rate for the current year is 8.6%. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the past 60 days. ANF currently has a Zacks Rank #2.

Tapestry

Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.

Tapestry’sexpected earnings growth rate for the current year is 26.5%. The Zacks Consensus Estimate for current-year earnings has improved 14.6% over the past 60 days. TPR presently sports a Zacks Rank #1.

Five Below, Inc

Five Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.

Five Below’s expected earnings growth rate for the current year is 19.2%. The Zacks Consensus Estimate for current-year earnings has improved 17.8% over the past 60 days. FIVE presently carries a Zacks Rank #1.

Casey's General Stores

Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. In addition to fuel, the stores provide a wide variety of merchandise, including groceries, prepared food, snacks, beverages, tobacco products, health and beauty aids, school supplies, housewares, pet supplies and automotive supplies.

Casey’s has an expected earnings growth rate of 23.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the last 60 days. CASY currently has a Zacks Rank #2.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include

Stock #1: A Disruptive Force with Notable Growth and Resilience

Stock #2: Bullish Signs Signaling to Buy the Dip

Stock #3: One of the Most Compelling Investments in the Market

Stock #4: Leader In a Red-Hot Industry Poised for Growth

Stock #5: Modern Omni-Channel Platform Coiled to Spring

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.

See Our Newest 5 Stocks Set to Double Picks >>

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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report

Casey's General Stores, Inc. (CASY): Free Stock Analysis Report

Five Below, Inc. (FIVE): Free Stock Analysis Report

Tapestry, Inc. (TPR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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