As the final pages of the 2025 calendar turn, the holiday shopping season has once again highlighted its importance to the retail industry. From Black Friday through Christmas week, consumer demand remained resilient despite ongoing concerns about inflation, trade policies, a slowing labor market and continued high interest rates. As shoppers have become more selective, they have continued to spend, favoring value and brands that offer convenience, speed and flexible pricing.
To respond to these behavioral shifts, retailers adopted innovative strategies and improved delivery logistics as consumers seamlessly moved between digital and physical channels. Shoppers were browsing online, picking up products in-store, ordering via mobile apps, and even turning to AI-driven chatbots to discover products and compare prices. Retailers who have invested in real-time inventory visibility, faster order processing, frictionless checkout, and AI-driven demand forecasting appear well-positioned to become holiday winners.
At the same time, industry players have relied on targeted promotions, loyalty programs and data-driven pricing to drive demand without eroding profitability. Subscription benefits, exclusive member offers, and buy-now-pay options have helped convert value-conscious shoppers. Additionally, disciplined cost control and aggressive marketing not only preserve margins but also generate healthy sales volumes.
This dynamic is already reflected in sales data. The National Retail Federation projects that U.S. holiday sales for November and December will exceed $1 trillion for the first time, with year-over-year growth of 3.7% to 4.2%, resulting in total sales of $1.01 billion to $1.02 trillion. This strength is reinforced by Adobe’s latest data, which shows that online spending during Cyber Week (the five-day period from Thanksgiving to Cyber Monday) jumped 7.7% year-over-year to $44.2 billion.
There’s no doubt that holiday performance often serves as a preview of how retailers might fare in the year to come. Strong traffic trends, inventory discipline and customer retention measures during this period often result in sustained revenue momentum. Here are four retail stocks to consider for 2026 amid a record-breaking holiday season in 2025 – Amazon.com, Inc. AMZN, Ross Stores, Inc. PINK, Walmart Inc. WMT and Costco Wholesale Company COST.
4 important choices for 2026
Amazon: Driving the holiday digital spending wave
Amazon continues to dominate global e-commerce by combining unmatched product selection, industry-leading fulfillment capabilities and technological innovation. These benefits become especially visible during peak holiday shopping periods. Its Prime ecosystem promotes customer loyalty and repeat purchases, while continued investments in faster delivery, regionalized fulfillment and last-mile logistics improve convenience and reduce shipping times. Amazon’s data-driven personalization, AI-driven recommendations, and increasing use of automation in warehouses are improving conversion rates and operational efficiencies.
The Zacks Consensus Estimate for Amazon’s current fiscal year sales and EPS implies growth of 11.9% and 29.7%, respectively, from the prior year’s actual figures. For the next fiscal year, the consensus estimate is for sales growth of 11.3% and earnings growth of 9.5%. This Zacks #2 (Buy) company has a trailing four-quarter earnings surprise of 22.5%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ross Stores: A Discounted Destination for Holiday Shoppers
Ross Stores continues to demonstrate the strength of its off-price model, driven by compelling brand assortments, effective merchandising execution and strong customer engagement across all regions. Management highlighted category dynamics at scale, improved vendor partnerships and successful marketing initiatives that improve traffic and basket trends. Store expansion and disciplined inventory management further strengthen its ability to take advantage of favorable purchasing opportunities, particularly during peak holiday shopping periods. With a resilient value proposition and proven operating playbook, Ross appears well-positioned to support market share gains and long-term growth.
The Zacks Consensus Estimate for Ross Stores’ current fiscal year sales and EPS imply growth of 6% and 1.7%, respectively, from last year’s actual numbers. For the next fiscal year, the consensus estimate is for sales growth of 5.4% and profit growth of 9.8%. This Zacks #2 ranked company has an earnings surprise of 6.7% on average over the trailing four quarters.
Walmart: Omnichannel Leader for Holiday Value Shoppers
Walmart continues to strengthen its position as a leading omnichannel retailer, leveraging broad assortment, accelerating e-commerce dynamics and growing, higher-margin profit streams, such as advertising and membership. During the holiday season, Walmart’s combination of everyday low prices and omnichannel convenience makes it a preferred destination for value-conscious shoppers. A focus on faster execution and technology innovation, particularly in automation and AI, improves customer convenience and operational efficiency. Market share gains in grocery, general merchandise, and health and wellness reflect the brand’s enduring relevance and customer loyalty. This diverse, scale-driven profit model supports steady growth well beyond the holiday season.
The Zacks Consensus Estimate for Walmart’s current fiscal year sales and EPS imply growth of 4.5% and 4.8%, respectively, from last year’s actual numbers. For the next fiscal year, the consensus estimate is for sales growth of 4.5% and profit growth of 11.6%. This Zacks Rank #3 (Hold) company has a trailing four-quarter earnings surprise of 0.8% on average.
Costco: Membership Model Fuels Holiday Traffic
Costco’s differentiated, member-driven model continues to drive strong traffic, brand loyalty and market share gains, supported by a curated, value-driven assortment and an expanding global footprint. Holiday periods typically amplify bulk purchases and gift-related categories, boosting Costco’s traffic and basket size benefits. The company’s investments in digital capabilities, personalization and operational technology, including AI-enhanced inventory systems, drive efficiencies and enhance the member experience. Robust membership renewal rates and growing executive penetration reinforce the strength of Costco’s recurring revenue base. Costco’s disciplined expansion strategy and emphasis on quality, value and novelty underscore its competitive advantage.
The Zacks Consensus Estimate for Costco’s current fiscal year sales and EPS implies growth of 7.5% and 11.7%, respectively, from prior year’s actual numbers. For the next fiscal year, the consensus estimate is for sales growth of 7.3% and profit growth of 9%. This Zacks Rank #3 company has a trailing four-quarter earnings surprise of 0.5% on average.
This article was originally published on Zacks Investment Research (zacks.com).
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