Oppenheimer Highlights 5 Retail Stocks Investors Should Consider for 2025

Oppenheimer recently highlighted five significant retail stocks that investors should consider as they plan their portfolios for 2025.

The identified stocks—Church & Dwight Co., Freshpet Inc., Prestige Consumer Healthcare, Target Corporation, and Walmart Inc.—are seen as well-positioned to benefit from changing consumer behaviors and effective market strategies.

Church & Dwight Co. is a well-established player in the consumer products sector, recognized for brands like Arm & Hammer and OxiClean. Oppenheimer views this stock as a defensive opportunity in a market facing ongoing macroeconomic challenges. The company has a reputation for stable growth and consistent earnings, making it an appealing option for risk-averse investors. As inflation continues to be a concern, demand for essential household products is expected to persist, suggesting a stable performance for Church & Dwight. Analysts from Oppenheimer emphasize that the company’s history of delivering solid financial results, even in difficult economic times, makes it a key component of any retail investment strategy.

Freshpet is benefiting from the increasing trend toward premium, natural pet foods, as pet owners gravitate toward healthier options. According to Oppenheimer, Freshpet has successfully established itself in this expanding market by offering refrigerated, fresh pet food, distinguishing it from the traditionally prevalent dry and canned pet food. The company’s growth in retail presence, along with enhanced marketing efforts, has contributed to strong sales growth. Given consumers’ willingness to invest in healthier pet products, Oppenheimer anticipates continued strong performance and market share growth for Freshpet.

Prestige Consumer Healthcare is another top choice, leveraging the steady demand for over-the-counter healthcare products. Oppenheimer’s analysts point out that the diverse portfolio of Prestige includes popular brands like Clear Eyes, Chloraseptic, and BC Powder, which is a significant advantage. The ongoing emphasis on health and wellness, combined with the company’s innovative product developments, has enabled it to succeed in a competitive market. Increased consumer focus on preventative healthcare measures, particularly in the aftermath of the COVID-19 pandemic, has also benefited Prestige. Oppenheimer believes that the company’s capacity to maintain pricing power while continuously introducing new products will ensure sustained growth for investors through 2025.

Target has long been a favorite among retail analysts and continues to receive strong endorsement from Oppenheimer as a leading investment option for the coming years. Target’s successful positioning within both physical and online retail channels is attributed to its innovative store designs, diverse product offerings, and delivery services. The company excels in integrating in-store and online shopping experiences, meeting contemporary consumer demands for convenience. Oppenheimer notes Target’s expanding private label brands and growth in categories such as apparel, beauty, and essentials. Additionally, the investments made in same-day delivery and curbside pickup have allowed Target to maintain its competitive advantage in a rapidly evolving retail landscape.

Lastly, Walmart remains a solid choice for Oppenheimer, with analysts recognizing its strong market position and significant investments in technology. The company’s advancements in online retail and operational efficiencies have enabled it to thrive even in challenging conditions. Walmart’s focus on expanding its grocery services and introducing initiatives like Walmart+ is expected to foster future growth.

According to Oppenheimer’s analysts, these five stocks are well-positioned for strong returns as the retail sector continues to evolve. With prevailing market trends emphasizing innovation, health-awareness, and convenience, these companies stand out for their ability to adapt and meet changing consumer needs.