Best retail stocks to own heading into the 2025 holiday season

Consumer discretionary stocks have lagged the broader market this year, but momentum seems to be building as the holiday season approaches.

With shoppers increasingly focused on value and brand engagement, two names stand out as leaders in retail: TJX Companies and Ulta Beauty.

Both of these retail stocks were spotlighted by Josh Brown, the chief executive of Ritholtz Wealth Management, who argues they represent some of the best setups in the sector heading into year-end.

TJX Companies Inc (NYSE: TJX)

Josh Brown has long highlighted TJX Companies as a model of consistency in retail.

Operating more than 5,000 stores worldwide, many located near Target outlets, TJX thrives by offering consumers value at a time when everyday costs are rising.

Its decentralized pricing model empowers merchants to adjust ticket prices based on local market dynamics rather than rigid corporate mandates.

This flexibility ensures shoppers perceive strong bargains, a key driver of traffic and loyalty.

Financially, TJX continues to deliver as well. Earnings per share rose steadily from $2.97 in fiscal 2023 to $4.26 in fiscal 2025, with guidance for fiscal 2026 now raised to $4.34–$4.43.

Comparable sales grew 5% in the latest quarter – underscoring resilience even as consumers cut back elsewhere.

Brown advises traders to watch risk levels around $140 and $134, while long-term investors can take comfort in the company’s ability to raise guidance consistently.

Heading into year-end, TJX stock remains a standout for investors seeking durable growth in retail. A 1.12% dividend yield on this retail stock makes it even more attractive for income-focused investors.

Ulta Beauty Inc (NASDAQ: ULTA)

Ulta Beauty is another name Josh Brown singled out recently as a “best stock in the market.”

The company’s loyalty program is a powerhouse, with membership climbing to nearly 46 million in fiscal 2026. These members account for about 95% of sales, creating a sticky customer base that fuels repeat purchases and higher engagement.

Beyond loyalty, Ulta has leaned into cultural relevance through partnerships and events.

From serving as Beyoncé’s official beauty retail partner to staging activations at Coachella and Lollapalooza, Ulta has embedded itself in the lifestyle of its customers.

A Super Bowl campaign further boosted brand visibility, while tens of thousands of in-store events reinforced community ties.

The payoff is evident in performance: comparable sales rose 6.7% in Q2 FY26, with gains across all channels.

Technically, Brown points to the $570 level as a breakout point, while support around $500 has held firm.

With strong fundamentals and a loyal customer base, Ulta shares are positioned to keep winning market share as beauty spending accelerates into the holidays.

Unlike TJX Companies, however, Ulta Beauty Inc doesn’t currently pay a dividend and, therefore, remains unattractive for income investors.