5 Retail Stocks to Buy for 2025 as Personal Spending Continues to Soar

Economic Overview - The holiday season is witnessing aggressive consumer spending, supported by a steady rise in personal income, with consumer spending increasing by 0.4% in November after a 0.3% rise in October [1][4] - Personal income rose by 0.3% in November, while wages increased by 0.6%, contributing to a drop in the personal savings rate to 4.4% from 4.5% [9] Retail Sector Performance - Retail sales grew by 0.7% month over month in November, totaling $724.6 billion, following a 0.5% increase in October [18] - Online sales saw significant growth, with a 14.6% increase on Black Friday, totaling $10.8 billion, and Cyber Monday online sales reaching $13.3 billion [18] Investment Opportunities - Five retail stocks are highlighted for investment potential: Five Below, Inc. (FIVE), Amazon.com, Inc. (AMZN), Deckers Outdoor Corporation (DECK), The Gap, Inc. (GAP), and Dutch Bros Inc. (BROS) [2][10] - These stocks have shown positive earnings estimate revisions in the last 60 days and carry Zacks Rank 1 (Strong Buy) or 2 (Buy) [2] Company-Specific Insights - Five Below, Inc.: Expected earnings growth rate of 2.7% for next year, with a Zacks Consensus Estimate improvement of 6.6% over the last 60 days [20] - Amazon.com, Inc.: Expected earnings growth rate of 20% for next year, with a 9.3% improvement in current-year earnings estimates [13][21] - Deckers Outdoor Corporation: Expected earnings growth rate of 13.3% for next year, with a 3.4% improvement in current-year earnings estimates [22] - The Gap, Inc.: Expected earnings growth rate of 6.9% for next year, with a 7.4% improvement in current-year earnings estimates [15][23] - Dutch Bros Inc.: Expected earnings growth rate of 28.9% for next year, with a 15.4% improvement in current-year earnings estimates [24]