These 15 stocks of retailers are expected to rise up to 97% over the next year

By Philip van Doorn

With so many challenges for traditional retailers, investors can be forgiven for giving up on the entire sector. But there is money to be made if you focus on innovative sellers and maybe even on traditional brick-and-mortar retailers that are cleaning up their acts.

Below are two lists of stocks of retailers, broadly defined by FactSet to include specialized companies such as Vroom Inc. /zigman2/quotes/218801255/composite VRM +10.42% and Carvana Co. /zigman2/quotes/206651606/composite CVNA +19.54% , which sell (and buy) used cars online. The first list includes 15 stocks that analysts expect to rise the most over the next year, and the second list shows companies expected to increase their sales the most over the next two years.

Two retailers that didn’t make either list are Macy’s Inc. /zigman2/quotes/201854387/composite M -1.66% and Target Corp. /zigman2/quotes/207799045/composite TGT +0.89% . Both are worth watching, although investors with shorter-term horizons may find them pricey.

Shares of Macy’s had nearly doubled for 2021 through last week. The stock popped 20% on Aug. 19, after the company reported a 61% increase in comparable-store quarterly sales from a year earlier, established a quarterly dividend and announced an expanded partnership with WHP Global to sell more Toys ‘R’ Us items in its stores. The stock closed at $22.39 on Aug. 20 — a penny above the consensus 12-month price target among analysts polled by FactSet. Of course, analysts can change their estimates in light of recent news.

Target’s stock is up 49% this year. The company also reported a much-improved second quarter and expanded its partnership with Walt Disney Co. /zigman2/quotes/203410047/composite DIS -0.15% . Target’s shares closed at $253.40 on Aug. 20, 10% below the consensus price target of $277.66.

Analysts’ favorite retail stocks

Starting with the Russell 3000 Index /zigman2/quotes/210598149/delayed RUA +0.33% , there are 124 stocks of companies in retail industries, according to FactSet’s industry group descriptions. These include online retailers such as Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +3.04% and the direct used-auto retailers mentioned above.

Among those stocks, 77 have stock-market values of at least $1 billion, are covered by at least five analysts polled by FactSet and have consensus sales and earnings estimates available through 2023.

Here are the 15 stocks with majority “buy” or equivalent ratings that the analysts believe have the most upside potential over the next year:

You can click on the tickers for more about each company, including business profiles, news coverage and price ratios.

Using the same order, here are sales estimates for the group through 2023:

The estimates are for calendar years, but note that many retailers’ fiscal years don’t match the calendar.

Also using the same list, here are estimates for earnings per share through 2023:

For three of the companies, the expected two-year change in EPS is “N/A” because estimated earnings for 2021 or 2023, or both, are negative.

/zigman2/quotes/218801255/composite

Add to watchlist VRM

Vroom Inc.

US : U.S.: Nasdaq

$ 1.06

+0.10 +10.42%

Volume: 5.49M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$132.65 million

Rev. per Employee

$1.48M

/zigman2/quotes/206651606/composite

Add to watchlist CVNA

Carvana Co. Cl A

US : U.S.: NYSE

$ 7.77

+1.27 +19.54%

Volume: 36.03M

Jan. 27, 2023 4:01p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$1.23 billion

Rev. per Employee

$691,429

/zigman2/quotes/201854387/composite

Add to watchlist M

Macy's Inc.

US : U.S.: NYSE

$ 23.08

-0.39 -1.66%

Volume: 5.62M

Jan. 27, 2023 4:00p

P/E Ratio

4.81

Dividend Yield

2.73%

Market Cap

$6.36 billion

Rev. per Employee

$289,319

/zigman2/quotes/207799045/composite

Add to watchlist TGT

Target Corp.

US : U.S.: NYSE

$ 168.51

+1.48 +0.89%

Volume: 3.85M

Jan. 27, 2023 4:03p

P/E Ratio

23.07

Dividend Yield

2.56%

Market Cap

$76.89 billion

Rev. per Employee

$241,602

/zigman2/quotes/203410047/composite

Add to watchlist DIS

Walt Disney Co.

US : U.S.: NYSE

$ 109.54

-0.16 -0.15%

Volume: 10.25M

Jan. 27, 2023 4:03p

P/E Ratio

63.59

Dividend Yield

0.00%

Market Cap

$200.40 billion

Rev. per Employee

$375,364

/zigman2/quotes/210598149/delayed

Add to watchlist RUA

Russell 3000 Index

US : Russell Indices

2,361.86

+7.69 +0.33%

Volume: 5.94M

Jan. 27, 2023 4:30p

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 102.24

+3.02 +3.04%

Volume: 87.78M

Jan. 27, 2023 4:00p

P/E Ratio

93.88

Dividend Yield

N/A

Market Cap

$1012.21 billion

Rev. per Employee

$312,308

/zigman2/quotes/218801255/composite

Add to watchlist VRM

Vroom Inc.

US : U.S.: Nasdaq

$ 1.06

+0.10 +10.42%

Volume: 5.49M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$132.65 million

Rev. per Employee

$1.48M

/zigman2/quotes/212846592/composite

Add to watchlist REAL

RealReal Inc.

US : U.S.: Nasdaq

$ 1.75

+0.16 +10.06%

Volume: 4.56M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$155.92 million

Rev. per Employee

$175,548

/zigman2/quotes/200022359/composite

Add to watchlist OSTK

Overstock.com Inc.

US : U.S.: Nasdaq

$ 24.20

+1.62 +7.17%

Volume: 1.59M

Jan. 27, 2023 4:00p

P/E Ratio

122.10

Dividend Yield

N/A

Market Cap

$1.03 billion

Rev. per Employee

$1.58M

/zigman2/quotes/214140886/composite

Add to watchlist CHPT

ChargePoint Holdings Inc.

US : U.S.: NYSE

$ 12.16

+0.86 +7.61%

Volume: 16.06M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$3.86 billion

Rev. per Employee

$275,725

/zigman2/quotes/202697225/composite

Add to watchlist GPI

Group 1 Automotive Inc.

US : U.S.: NYSE

$ 206.94

+0.50 +0.24%

Volume: 228,847

Jan. 27, 2023 4:00p

P/E Ratio

4.40

Dividend Yield

0.72%

Market Cap

$3.01 billion

Rev. per Employee

$1.18M

/zigman2/quotes/222187547/composite

Add to watchlist LESL

Leslie's Inc.

US : U.S.: Nasdaq

$ 15.21

+0.77 +5.33%

Volume: 2.08M

Jan. 27, 2023 4:00p

P/E Ratio

17.64

Dividend Yield

N/A

Market Cap

$2.65 billion

Rev. per Employee

$371,933

/zigman2/quotes/202974783/composite

Add to watchlist LAD

Lithia Motors Inc.

US : U.S.: NYSE

$ 250.22

+7.45 +3.07%

Volume: 368,383

Jan. 27, 2023 4:00p

P/E Ratio

5.58

Dividend Yield

0.67%

Market Cap

$6.64 billion

Rev. per Employee

$1.30M

/zigman2/quotes/212739891/composite

Add to watchlist IAA

IAA Inc.

US : U.S.: NYSE

$ 41.22

+0.37 +0.91%

Volume: 1.33M

Jan. 27, 2023 4:00p

P/E Ratio

19.25

Dividend Yield

N/A

Market Cap

$5.46 billion

Rev. per Employee

$477,620

/zigman2/quotes/206677024/composite

Add to watchlist ANF

Abercrombie & Fitch Co.

US : U.S.: NYSE

$ 27.31

-0.53 -1.90%

Volume: 952,981

Jan. 27, 2023 4:00p

P/E Ratio

64.26

Dividend Yield

0.00%

Market Cap

$1.36 billion

Rev. per Employee

$116,168

/zigman2/quotes/207417762/composite

Add to watchlist TPR

Tapestry Inc.

US : U.S.: NYSE

$ 44.12

+0.06 +0.14%

Volume: 2.14M

Jan. 27, 2023 4:03p

P/E Ratio

14.01

Dividend Yield

2.72%

Market Cap

$10.62 billion

Rev. per Employee

$370,724

/zigman2/quotes/206301876/composite

Add to watchlist CPRI

Capri Holdings Ltd.

US : U.S.: NYSE

$ 64.64

+0.49 +0.76%

Volume: 1.14M

Jan. 27, 2023 4:00p

P/E Ratio

11.36

Dividend Yield

N/A

Market Cap

$8.26 billion

Rev. per Employee

$402,260

/zigman2/quotes/203357771/composite

Add to watchlist SAH

Sonic Automotive Inc. Cl A

US : U.S.: NYSE

$ 50.86

-0.14 -0.27%

Volume: 291,702

Jan. 27, 2023 4:00p

P/E Ratio

5.56

Dividend Yield

2.20%

Market Cap

$1.87 billion

Rev. per Employee

$1.33M

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 102.24

+3.02 +3.04%

Volume: 87.78M

Jan. 27, 2023 4:00p

P/E Ratio

93.88

Dividend Yield

N/A

Market Cap

$1012.21 billion

Rev. per Employee

$312,308

/zigman2/quotes/201173500/composite

Add to watchlist HIBB

Hibbett Inc.

US : U.S.: Nasdaq

$ 66.13

-0.97 -1.45%

Volume: 305,863

Jan. 27, 2023 4:00p

P/E Ratio

8.32

Dividend Yield

1.51%

Market Cap

$854.02 million

Rev. per Employee

$148,488

/zigman2/quotes/209429711/composite

Add to watchlist AEO

American Eagle Outfitters Inc.

US : U.S.: NYSE

$ 15.66

-0.20 -1.26%

Volume: 2.50M

Jan. 27, 2023 4:00p

P/E Ratio

27.39

Dividend Yield

4.60%

Market Cap

$2.97 billion

Rev. per Employee

$122,590

/zigman2/quotes/218801255/composite

Add to watchlist VRM

Vroom Inc.

US : U.S.: Nasdaq

$ 1.06

+0.10 +10.42%

Volume: 5.49M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$132.65 million

Rev. per Employee

$1.48M

/zigman2/quotes/212846592/composite

Add to watchlist REAL

RealReal Inc.

US : U.S.: Nasdaq

$ 1.75

+0.16 +10.06%

Volume: 4.56M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$155.92 million

Rev. per Employee

$175,548

/zigman2/quotes/200022359/composite

Add to watchlist OSTK

Overstock.com Inc.

US : U.S.: Nasdaq

$ 24.20

+1.62 +7.17%

Volume: 1.59M

Jan. 27, 2023 4:00p

P/E Ratio

122.10

Dividend Yield

N/A

Market Cap

$1.03 billion

Rev. per Employee

$1.58M

/zigman2/quotes/214140886/composite

Add to watchlist CHPT

ChargePoint Holdings Inc.

US : U.S.: NYSE

$ 12.16

+0.86 +7.61%

Volume: 16.06M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$3.86 billion

Rev. per Employee

$275,725

/zigman2/quotes/202697225/composite

Add to watchlist GPI

Group 1 Automotive Inc.

US : U.S.: NYSE

$ 206.94

+0.50 +0.24%

Volume: 228,847

Jan. 27, 2023 4:00p

P/E Ratio

4.40

Dividend Yield

0.72%

Market Cap

$3.01 billion

Rev. per Employee

$1.18M

/zigman2/quotes/222187547/composite

Add to watchlist LESL

Leslie's Inc.

US : U.S.: Nasdaq

$ 15.21

+0.77 +5.33%

Volume: 2.08M

Jan. 27, 2023 4:00p

P/E Ratio

17.64

Dividend Yield

N/A

Market Cap

$2.65 billion

Rev. per Employee

$371,933

/zigman2/quotes/202974783/composite

Add to watchlist LAD

Lithia Motors Inc.

US : U.S.: NYSE

$ 250.22

+7.45 +3.07%

Volume: 368,383

Jan. 27, 2023 4:00p

P/E Ratio

5.58

Dividend Yield

0.67%

Market Cap

$6.64 billion

Rev. per Employee

$1.30M

/zigman2/quotes/212739891/composite

Add to watchlist IAA

IAA Inc.

US : U.S.: NYSE

$ 41.22

+0.37 +0.91%

Volume: 1.33M

Jan. 27, 2023 4:00p

P/E Ratio

19.25

Dividend Yield

N/A

Market Cap

$5.46 billion

Rev. per Employee

$477,620

/zigman2/quotes/206677024/composite

Add to watchlist ANF

Abercrombie & Fitch Co.

US : U.S.: NYSE

$ 27.31

-0.53 -1.90%

Volume: 952,981

Jan. 27, 2023 4:00p

P/E Ratio

64.26

Dividend Yield

0.00%

Market Cap

$1.36 billion

Rev. per Employee

$116,168

/zigman2/quotes/207417762/composite

Add to watchlist TPR

Tapestry Inc.

US : U.S.: NYSE

$ 44.12

+0.06 +0.14%

Volume: 2.14M

Jan. 27, 2023 4:03p

P/E Ratio

14.01

Dividend Yield

2.72%

Market Cap

$10.62 billion

Rev. per Employee

$370,724

/zigman2/quotes/206301876/composite

Add to watchlist CPRI

Capri Holdings Ltd.

US : U.S.: NYSE

$ 64.64

+0.49 +0.76%

Volume: 1.14M

Jan. 27, 2023 4:00p

P/E Ratio

11.36

Dividend Yield

N/A

Market Cap

$8.26 billion

Rev. per Employee

$402,260

/zigman2/quotes/203357771/composite

Add to watchlist SAH

Sonic Automotive Inc. Cl A

US : U.S.: NYSE

$ 50.86

-0.14 -0.27%

Volume: 291,702

Jan. 27, 2023 4:00p

P/E Ratio

5.56

Dividend Yield

2.20%

Market Cap

$1.87 billion

Rev. per Employee

$1.33M

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 102.24

+3.02 +3.04%

Volume: 87.78M

Jan. 27, 2023 4:00p

P/E Ratio

93.88

Dividend Yield

N/A

Market Cap

$1012.21 billion

Rev. per Employee

$312,308

/zigman2/quotes/201173500/composite

Add to watchlist HIBB

Hibbett Inc.

US : U.S.: Nasdaq

$ 66.13

-0.97 -1.45%

Volume: 305,863

Jan. 27, 2023 4:00p

P/E Ratio

8.32

Dividend Yield

1.51%

Market Cap

$854.02 million

Rev. per Employee

$148,488

/zigman2/quotes/209429711/composite

Add to watchlist AEO

American Eagle Outfitters Inc.

US : U.S.: NYSE

$ 15.66

-0.20 -1.26%

Volume: 2.50M

Jan. 27, 2023 4:00p

P/E Ratio

27.39

Dividend Yield

4.60%

Market Cap

$2.97 billion

Rev. per Employee

$122,590

/zigman2/quotes/218801255/composite

Add to watchlist VRM

Vroom Inc.

US : U.S.: Nasdaq

$ 1.06

+0.10 +10.42%

Volume: 5.49M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$132.65 million

Rev. per Employee

$1.48M

/zigman2/quotes/212846592/composite

Add to watchlist REAL

RealReal Inc.

US : U.S.: Nasdaq

$ 1.75

+0.16 +10.06%

Volume: 4.56M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$155.92 million

Rev. per Employee

$175,548

/zigman2/quotes/200022359/composite

Add to watchlist OSTK

Overstock.com Inc.

US : U.S.: Nasdaq

$ 24.20

+1.62 +7.17%

Volume: 1.59M

Jan. 27, 2023 4:00p

P/E Ratio

122.10

Dividend Yield

N/A

Market Cap

$1.03 billion

Rev. per Employee

$1.58M

/zigman2/quotes/214140886/composite

Add to watchlist CHPT

ChargePoint Holdings Inc.

US : U.S.: NYSE

$ 12.16

+0.86 +7.61%

Volume: 16.06M

Jan. 27, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$3.86 billion

Rev. per Employee

$275,725

/zigman2/quotes/202697225/composite

Add to watchlist GPI

Group 1 Automotive Inc.

US : U.S.: NYSE

$ 206.94

+0.50 +0.24%

Volume: 228,847

Jan. 27, 2023 4:00p

P/E Ratio

4.40

Dividend Yield

0.72%

Market Cap

$3.01 billion

Rev. per Employee

$1.18M

/zigman2/quotes/222187547/composite

Add to watchlist LESL

Leslie's Inc.

US : U.S.: Nasdaq

$ 15.21

+0.77 +5.33%

Volume: 2.08M

Jan. 27, 2023 4:00p

P/E Ratio

17.64

Dividend Yield

N/A

Market Cap

$2.65 billion

Rev. per Employee

$371,933

/zigman2/quotes/202974783/composite

Add to watchlist LAD

Lithia Motors Inc.

US : U.S.: NYSE

$ 250.22

+7.45 +3.07%

Volume: 368,383

Jan. 27, 2023 4:00p

P/E Ratio

5.58

Dividend Yield

0.67%

Market Cap

$6.64 billion

Rev. per Employee

$1.30M

/zigman2/quotes/212739891/composite

Add to watchlist IAA

IAA Inc.

US : U.S.: NYSE

$ 41.22

+0.37 +0.91%

Volume: 1.33M

Jan. 27, 2023 4:00p

P/E Ratio

19.25

Dividend Yield

N/A

Market Cap

$5.46 billion

Rev. per Employee

$477,620

/zigman2/quotes/206677024/composite

Add to watchlist ANF

Abercrombie & Fitch Co.

US : U.S.: NYSE

$ 27.31

-0.53 -1.90%

Volume: 952,981

Jan. 27, 2023 4:00p

P/E Ratio

64.26

Dividend Yield

0.00%

Market Cap

$1.36 billion

Rev. per Employee

$116,168

/zigman2/quotes/207417762/composite

Add to watchlist TPR

Tapestry Inc.

US : U.S.: NYSE

$ 44.12

+0.06 +0.14%

Volume: 2.14M

Jan. 27, 2023 4:03p

P/E Ratio

14.01

Dividend Yield

2.72%

Market Cap

$10.62 billion

Rev. per Employee

$370,724

/zigman2/quotes/206301876/composite

Add to watchlist CPRI

Capri Holdings Ltd.

US : U.S.: NYSE

$ 64.64

+0.49 +0.76%

Volume: 1.14M

Jan. 27, 2023 4:00p

P/E Ratio

11.36

Dividend Yield

N/A

Market Cap

$8.26 billion

Rev. per Employee

$402,260

/zigman2/quotes/203357771/composite

Add to watchlist SAH

Sonic Automotive Inc. Cl A

US : U.S.: NYSE

$ 50.86

-0.14 -0.27%

Volume: 291,702

Jan. 27, 2023 4:00p

P/E Ratio

5.56

Dividend Yield

2.20%

Market Cap

$1.87 billion

Rev. per Employee

$1.33M

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 102.24

+3.02 +3.04%

Volume: 87.78M

Jan. 27, 2023 4:00p

P/E Ratio

93.88

Dividend Yield

N/A

Market Cap

$1012.21 billion

Rev. per Employee

$312,308

/zigman2/quotes/201173500/composite

Add to watchlist HIBB

Hibbett Inc.

US : U.S.: Nasdaq

$ 66.13

-0.97 -1.45%

Volume: 305,863

Jan. 27, 2023 4:00p

P/E Ratio

8.32

Dividend Yield

1.51%

Market Cap

$854.02 million

Rev. per Employee

$148,488

/zigman2/quotes/209429711/composite

Add to watchlist AEO

American Eagle Outfitters Inc.

US : U.S.: NYSE

$ 15.66

-0.20 -1.26%

Volume: 2.50M

Jan. 27, 2023 4:00p

P/E Ratio

27.39

Dividend Yield

4.60%

Market Cap

$2.97 billion

Rev. per Employee

$122,590