Two retail stocks to buy as the holiday shopping season kicks off next week

Loop Capital's favorite retail stocks for the 2025 holiday shopping season are Best Buy and Five Below . This year, major consultancies that track the state of the consumer are forecasting retail sales will increase 3.6% from last year, slower than a year ago and also a deceleration from recent trends, Loop Capital said. That makes sense given a cloudy U.S. economy, with waning consumer confidence and a weaker job market. But while this backdrop gives Loop Capital analyst Anthony Chukumba "significant pause," he still sees Best Buy and Five Below as the two clear winners for the holiday season. Chukumba shared that Best Buy is traditionally one of his favorite long ideas around this time of year. "That said, our conviction level is much higher than normal this year for three primary reason