The Best 3 Retail Stocks to Buy in March

Earnings season has nearly come to an end for most of America’s retailers, and many of the ones that reported over the last few weeks were some of the top chains. This was an area of focus, particularly amid an uncertain economy.

Fortunately, the reports highlighted some opportunities for investors. As prospective shareholders ponder various choices, these three consumer discretionary stocks are arguably excellent picks to pursue in the current economy.

Image source: Getty Images.

  1. Amazon

As the company that pioneered e-commerce and cloud computing, **Amazon **(AMZN 2.61%) has become the country’s second-largest retailer.

Its cloud computing arm, AWS, has long generated the majority of Amazon’s operating income. To that end, the company may have unnerved investors by pledging $200 billion in capital expenditures for this year alone. Moreover, it has typically traded at a premium valuation, likely leading to the stock’s slower growth recently.

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NASDAQ: AMZN

Amazon

Today’s Change

(-2.61%) $-5.71

Current Price

$213.23

Key Data Points

Market Cap

$2.3T

Day’s Range

$212.53 - $217.31

52wk Range

$161.38 - $258.60

Volume

3.3K

Avg Vol

48M

Gross Margin

50.29%

Retailing is a low-margin business, so having AWS is an advantage because it can help subsidize AI. Also, its businesses such as digital advertising and third-party seller services likely help raise its margins.

As for Amazon’s valuation, its price-to-earnings ratio (P/E) of 30 closely approximates the **S&P 500 **average. Considering that its $78 billion in net income in 2025 grew by 31% compared to year-ago levels, that earnings multiple arguably looks inexpensive.

Investors should also note that Grand View Research forecasts a compound annual growth rate (CAGR) of 31% for AI through 2033. In other words, what was a $391 billion market last year could reach $3.5 trillion by 2033, which means that Amazon’s huge investment could pay off.

Switching back to retail, Grand View forecasts a 19% CAGR for e-commerce through 2030. That could also stoke significant growth, meaning Amazon’s best days could be yet to come.

  1. Ollie’s

**Ollie’s Bargain Outlet **(OLLI 0.22%) is not necessarily on the radar of investors, but it is worth a closer look. The company obtains closeout and overstock merchandise from well-known brands and sells it to consumers at a considerable discount.

It is also in the middle of expanding from a regional chain to a national one, a strategy that has turned out well for the stocks of now-established retailers in the past. Its acquisition of Big Lots and 99 Cents Only locations recently fueled that expansion, and it now has about 645 locations, with the goal of growing to more than 1,000 stores across the U.S.

Ollie’s is slated to report fiscal fourth-quarter earnings on March 12, but amid that expansion, its revenue in the first nine months of fiscal 2025 (ended Nov. 1, 2025) rose by 17% yearly. That led to $155 million in net income over the same period, an 18% annual increase.

It delivered flat stock performance over the last year, primarily due to the costs of its rapid expansion. Also, valuation had become a concern, since its P/E briefly exceeded 40 last summer.

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NASDAQ: OLLI

Ollie’s Bargain Outlet

Today’s Change

(-0.22%) $-0.24

Current Price

$108.99

Key Data Points

Market Cap

$6.7B

Day’s Range

$106.41 - $109.17

52wk Range

$97.04 - $141.74

Volume

24K

Avg Vol

1.2M

Gross Margin

39.20%

Fortunately, the pullback has taken its earnings multiple down to 30. That leaves it at a level where it is likely to recover as it starts to reap the benefits of its larger store footprint.

  1. Target

The stock of **Target **(TGT +0.32%) has suffered since the pandemic. Missteps such as higher inventories, less desirable merchandise, messier stores, and controversial political stances helped lead to huge sell-offs.

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NYSE: TGT

Target

Today’s Change

(0.32%) $0.39

Current Price

$120.75

Key Data Points

Market Cap

$55B

Day’s Range

$117.11 - $120.75

52wk Range

$83.44 - $126.00

Volume

14

Avg Vol

6.8M

Gross Margin

25.44%

Dividend Yield

3.76%

Consequently, its financials deteriorated, with net sales falling by 2% in fiscal 2025 (ended Jan. 31, 2026). Although it remains profitable, its $3.7 billion in net income for fiscal 2025 dropped by more than 9% yearly.

Nonetheless, investors now have more reason for optimism. Michael Fiddelke, who started at Target as an intern in 2003 and worked his way through the ranks, became CEO on Feb. 1.

In his first report since then, he forecast net sales growth of 2% for 2026, indicating the stock’s declines could be ending. He also announced a strategic plan that includes reformatting and remodeling stores, increasing spending on payroll and training, investing in technology and the supply chain, and returning to its roots as an “upscale discounter” by improving its product selection.

The good news is that Target has maintained its 54-year streak of payout hikes. With that, its 3.7% dividend yield far surpasses the S&P 500 average of 1.2%.

Lastly, assuming its plan succeeds, it could hold considerable upside. Target’s 15 P/E is well below Walmart’s 47 earnings multiple. If Fiddelke’s plan succeeds and Target could return to growth, it is likely to substantially enrich its shareholders.

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