1 Consumer Stock to Target This Week and 2 We Brush Off Petr Huřťák Tue, October 13, 2026 at 7:55 AM EDT 3 min read AEO -0.55% ^GSPC -0.06% ORLY +0.23% ARHS -1.96% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. Still, secular trends are working against them as e-commerce continues to take share from brick-and-mortar stores. This puts retail stocks in a tough spot, and over the past six months, the industry's returns were flat while the S&P 500 gained 13.5%.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient consumer stock at the top of our shopping list and two we're passing on.
With a heavy focus on denim, American Eagle Outfitters (NYSE:AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.
Lackluster 4.3% annual revenue growth over the last three years indicates the company is losing ground to competitors
Lack of new stores puts a ceiling on its growth and reflects a focus on optimizing sales at existing locations
Low returns on capital reflect management's struggle to allocate funds effectively
American Eagle's stock price of $17.92 implies a valuation ratio of 10.2x forward P/E. Dive into our free research report to see why there are better opportunities than AEO.
With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ:ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.
Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience
Modest revenue base of $1.41 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
Earnings per share fell by 24.2% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
At $9.51 per share, Arhaus trades at 18.9x forward P/E. Read our free research report to see why you should think twice about including ARHS in your portfolio, it's free.
Serving both the DIY customer and professional mechanic, O'Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.9% growth over the past two years
Healthy operating margin of 19.4% shows it's a well-run company with efficient processes
ROIC punches in at 42.2%, illustrating management's expertise in identifying profitable investments
O'Reilly is trading at $86.98 per share, or 24.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
