1 Consumer Stock for Long-Term Investors and 2 Facing Challenges Jabin Bastian Wed, October 14, 2026 at 4:18 AM EDT 3 min read MNRO +1.53% ^GSPC -0.02% AZO -0.19% ACI +1.44% 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. But many seem to be moving too slowly as their demand is lagging, causing the industry to underperform the market - over the past six months, retail stocks were flat while the S&P 500 climbed by 12%.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here is one consumer stock poised to generate sustainable market-beating returns and two we're steering clear of.
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations
Earnings per share have dipped by 54.2% annually over the past three years, which is concerning because stock prices follow EPS over the long term
6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Monro is trading at $13.97 per share, or 60.2x forward P/E. To fully understand why you should be careful with MNRO, check out our full research report (it's free).
With over 20 well-known grocery banners spanning 34 states, Albertsons (NYSE:ACI) operates food and drug retail stores across the US, offering groceries, pharmacy services, and own-brand products under banners like Safeway, Jewel-Osco, and Vons.
Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations
Widely-available products (and therefore stiff competition) result in an inferior gross margin of 27.2% that must be offset through higher volumes
Poor expense management has led to an operating margin of 1.2% that is below the industry average
Albertsons's stock price of $12.68 implies a valuation ratio of 7.2x forward P/E. Check out our free in-depth research report to learn more about why ACI doesn't pass our bar.
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
Same-store sales growth averaged 3.4% over the past two years, showing it's bringing new and repeat shoppers into its stores
Excellent operating margin of 18.7% highlights the efficiency of its business model
At $2,897 per share, AutoZone trades at 17.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free.
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