Consumer Resilience in a Downturn: Wells Fargo's Top 6 Retail Stocks for 2025

The U.S. economy is navigating a complex web of tariff pressures, geopolitical tensions, and in 2025. Yet, as the old adage goes, "A rising tide lifts all boats"-and in this case, the tide is consumer resilience. Wells Fargo's latest research underscores that even amid volatility, certain retail stocks are poised to thrive by leveraging . These companies aren't just surviving; they're building moats around their market share. Let's break down the six picks and why they're must-watch names for 2025.

1. Lululemon (LULU): The Premium Play in a Frugal World

Lululemon's story is one of brand loyalty and global expansion. , the stock faces headwinds from U.S. margin pressures and , according to StockWave Insights. . The company's community-driven initiatives, like the Sweatlife Festival, create stickiness that rivals can't replicate. While Wells Fargo trimmed its price target to $160, per MarketBeat, the long-term thesis remains intact: consumers will always pay a premium for comfort and identity, as noted by StockWave Insights.

2. Clorox (CLX): The Unsung Hero of Household Staples

Clorox is the quiet workhorse of the consumer staples sector. , it's proving that even in a downturn, people won't stop buying bleach or paper towels - figures highlighted in Wells Fargo's coverage on MarketBeat. The company's pivot to -expanding eco-friendly product lines-adds a tailwind as consumers prioritize green choices. However, , so investors should watch for sustainability risks. Clorox's recent rollout is a smart move to cut costs, but short-term hiccups could test patience, per MarketBeat.

3. American Express (AXP): Travel's Comeback Kid

American Express is riding the post-pandemic travel boom like a rodeo star. , the stock reflects confidence in the travel and entertainment sectors. . .

4. FactSet (FDS): AI-Driven Data Powerhouse

FactSet's Q4 2025 results were a masterclass in disciplined growth. , driven by like Pitch Creator, according to the FactSet Q4 transcript. While Wells Fargo downgraded FDS to Underweight with a $355 price target (MarketBeat), . FactSet's isn't just a buzzword-it's a competitive moat, , as detailed in the FactSet Q4 transcript.

5. DoorDash (DASH): The Delivery Dinosaur

, . The company's DashPass and expansion into groceries and alcohol delivery are reshaping convenience spending. Sustainability trends-like eco-friendly packaging-add another layer of resilience, according to the DoorDash delivery report. At $306, .

6. Lyft (LYFT): Profitability at Last

, as noted in the FactSet Q4 transcript. . With a $16 price target from Wells Fargo (MarketBeat), , a point also covered in the FactSet Q4 transcript.

The Bigger Picture: Why These Stocks Matter

Wells Fargo's 2025 outlook isn't just about picking winners-it's about building a portfolio that thrives in a "" scenario. , highlighted in the FactSet Q4 transcript, hinges on resilient sectors like financials, tech, and delivery services. These six stocks exemplify : they're not just riding the wave; they're shaping it.