Key Points
- Oppenheimer recommends five retail stocks for strong returns by 2025—(NYSE:CHD), (NASDAQ:FRPT), (NYSE:PBH), (NYSE:TGT), and (NYSE:WMT).
- Church & Dwight benefits from stable growth amid inflation concerns.
- Freshpet is well-positioned to capitalize on the demand for premium pet food. PBH thrives on consumer health and wellness trends.
- Target and Walmart stand out for their ability to innovate and adapt to digital retail growth.
Oppenheimer has identified five retail stocks that investors should consider adding to their portfolios heading into 2025. These stocks—Church & Dwight Co. (NYSE:CHD), Freshpet Inc. (NASDAQ:FRPT), Prestige Consumer Healthcare (NYSE:PBH), Target Corporation (NYSE:TGT), and Walmart Inc. (NYSE:WMT)—are expected to benefit from changing consumer behaviors and strong market execution.
Church & Dwight, known for household staples like Arm & Hammer and OxiClean, is considered a defensive investment in an uncertain economic environment. Oppenheimer highlights the company’s stable growth and reliable earnings as reasons to invest, particularly as inflation concerns persist. Consumers will likely continue purchasing essential household products, positioning Church & Dwight for steady performance. The company’s resilience in tough economic conditions is a cornerstone of retail portfolios.
Freshpet is capitalizing on the growing demand for premium, natural pet food, offering fresh, refrigerated products that stand out in a market traditionally dominated by dry and canned options. As more pet owners opt for healthier food choices, Freshpet has carved out a niche. The company’s expanding retail presence and strong marketing have driven robust sales growth, and Oppenheimer expects this momentum to continue, with Freshpet increasing its market share in the years ahead.
Prestige Consumer Healthcare has built a strong position in the over-the-counter healthcare market with brands like Clear Eyes and Chloraseptic. The company has benefited from growing consumer interest in health and wellness, a trend accelerated by the COVID-19 pandemic. Oppenheimer highlights PBH’s diverse product portfolio and innovation as key strengths, with the company showing resilience in maintaining pricing power while introducing new products. Prestige is expected to grow as consumers increasingly focus on preventative healthcare measures.
Target Corporation remains a top pick due to its successful integration of physical and online retail experiences. The company’s focus on convenience, supported by innovations in store design and delivery services, has positioned it as a leader in modern retail. Target’s private label brands and growing categories like apparel and beauty have grown strongly. Oppenheimer also points to Target’s investments in same-day delivery and curbside pickup as strategic moves that have kept it competitive in an increasingly digital market.
Walmart’s dominant market position and technological advancements make it a reliable investment. The company’s growth in online retail and focus on streamlining operations have enabled it to perform well even in challenging environments. Additionally, Walmart’s expansion of its grocery business and services like Walmart+ are expected to drive future growth. Oppenheimer emphasizes Walmart’s ability to adapt to evolving consumer needs, particularly in convenience and technology.
