Investing.com -- Oppenheimer in a note dated Wednesday flagged five key retail stocks that they believe investors should seriously consider as part of their portfolios heading into 2025.
The stocks identified—Church & Dwight Co (NYSE:CHD), Freshpet Inc . (NASDAQ:FRPT), Prestige Consumer Healthcare (NYSE:PBH), Target Corporation (NYSE:TGT), and Walmart Inc. (NYSE:WMT) — are positioned to benefit from evolving consumer behavior and strong execution in their respective markets.
Church & Dwight Co. is a household name in consumer products, with well-known brands like Arm & Hammer and OxiClean. Oppenheimer sees CHD as a defensive play in a market that continues to face macroeconomic uncertainties.
Church & Dwight has a solid reputation for stable growth and reliable earnings, making it attractive for investors seeking safety.
As inflation remains a concern, consumers are likely to continue buying essential household products, positioning CHD for steady performance.
Analysts at Oppenheimer stress that CHD’s ability to deliver consistent financial results, even during challenging economic periods, makes it a cornerstone of any retail investment strategy moving forward.
Freshpet represents the growing trend toward premium, natural pet foods, which continues to see strong demand as pet owners increasingly opt for healthier options.
As per Oppenheimer, Freshpet has carved out a niche in this high-growth sector by offering refrigerated, fresh pet food, positioning itself as a premium brand in an industry traditionally dominated by dry and canned foods.
The company's expansion in retail locations and increased marketing presence has led to robust sales growth.
With consumers willing to spend more on healthier products for their pets, Oppenheimer expects Freshpet to maintain its strong momentum and further grow its market share in the coming years.
Prestige Consumer Healthcare, another top pick, is capitalizing on the sustained consumer demand for over-the-counter healthcare products.
Oppenheimer’s analysts highlight PBH’s diverse portfolio, which includes household names like Clear Eyes, Chloraseptic, and BC Powder, as a key strength.
The ongoing focus on health and wellness, combined with the company’s strategic product innovations, has allowed PBH to thrive in a competitive landscape.
PBH is also benefiting from increased consumer interest in preventative health measures, a trend that has accelerated in the wake of the COVID-19 pandemic.
The analysts at Oppenheimer believe that the company’s ability to maintain pricing power while continuing to deliver new products will drive sustained growth for investors through 2025.
Target remains a long-standing favorite among retail analysts, and Oppenheimer continues to back it as a top pick for the upcoming years. Target has successfully positioned itself as a leader in both physical and online retail, thanks to its innovative approach to store design, product assortment, and delivery services.
The company’s strength lies in its ability to seamlessly integrate in-store and online shopping experiences, catering to the modern consumer’s demand for convenience.
Oppenheimer also points to Target’s growing private label brands and its focus on categories like apparel, beauty, and essentials, which have seen particularly strong growth.
Additionally, Target’s investment in same-day delivery and curbside pickup has paid off, helping the company maintain a competitive edge in an increasingly digital retail environment.
Lastly, Walmart remains a reliable pick for Oppenheimer, with analysts praising its dominant market position and extensive investments in technology.
Walmart’s growth in online retail and its ability to streamline operations have allowed it to thrive even in challenging retail environments.
Moreover, the company’s focus on expanding its grocery business and adding services like Walmart+ is expected to drive future growth.
These five stocks, according to Oppenheimer’s analysts, are poised to offer strong returns as the retail sector evolves. With market trends favoring innovation, health-consciousness, and convenience, these companies stand out for their ability to adapt and capitalize on consumer needs.