Retailers are overhauling their operations as technology redefines the shopping experience. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars. This puts retail stocks in a tough spot, and over the past six months, the industry has pulled back by 8.3%. This drop is a noticeable divergence from the S&P 500’s 3.3% return. \nThe elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one consumer stock boasting a durable advantage and two we’re steering clear of. \n\nTwo Consumer Retail Stocks to Sell: \n\nZumiez (ZUMZ)\n\nMarket Cap: $236 million\n\nWith store associates called \"Zumiez Stash Members\", Zumiez <a>ZUMZ</a> is a specialty retailer of street and skate apparel, footwear, and accessories. \n\nWhy Should You Dump ZUMZ?\nLagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand\nPersistent operating margin losses suggest the business manages its expenses poorly\nFalling earnings per share over the last six years has some investors worried as stock prices ultimately follow EPS over the long term\n\nZumiez’s stock price of $13.54 implies a valuation ratio of 50.4x forward P/E. <a>Check out our free in-depth research report to learn more about why ZUMZ doesn’t pass our bar</a>. \n\nCarMax (KMX)\n\nMarket Cap: $8.40 billion\n\nKnown for its transparent, customer-centric approach and wide selection of vehicles, Carmax <a>KMX</a> is the largest automotive retailer in the United States. \n\nWhy Do We Pass on KMX?\nDisappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience\nGross margin of 10.8% is an output of its commoditized inventory\n15× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings\n\nAt $56.18 per share, CarMax trades at 14.2x forward P/E. <a>If you’re considering KMX for your portfolio, see our FREE research report to learn more</a>. \n\nOne Consumer Retail Stock to Watch: \n\nDick's (DKS)\n\nMarket Cap: $16.55 billion\n\nStarted as a hunting supply store, Dick’s Sporting Goods <a>DKS</a> is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities. \n\nWhy Are We Fans of DKS?\nComparable store sales rose by 4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations\nEarnings growth has easily exceeded the peer group average over the last six years as its EPS has compounded at 27.4% annually\nStellar returns on capital showcase management’s ability to surface highly profitable business ventures\n\nDick's is trading at $210.90 per share, or 14.2x forward P/E. Is now a good time to buy? <a>See for yourself in our full research report, it’s free</a>. \n\nStocks We Like Even More\n\nWhen Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses. \n\nDon’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our <em>High Quality</em> stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). \n\nStocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return).

1 Consumer Stock with Promising Prospects and 2 We Brush Off

The article discusses the performance of three consumer retail stocks, highlighting Zumiez and CarMax as underperforming and Dick's as a strong investment opportunity, while also noting broader market trends and other stocks with high returns.