Top 2 Retail Growth Stocks to Buy After Their Latest Sell-Off

By Lawrence Rothman, CFA – Mar 24, 2026 at 4:32PM ESTKey PointsWhile the retail sector faces near-term challenges, Ross Stores and Five Below continue to grow sales.Ross Stores sells heavily discounted merchandise.Five Below offers goods at low price points.Investors have a lot of short-term worries about the retail sector, and they seem to have a new one developing with the onset of the Iran war. They already had concerns about stubborn inflation biting into consumers' wallets and the weakening job market. The retail sector will undoubtedly feel the effects of the Iran war, such as the spike in energy prices that has already caused a rapid increase in gasoline prices. However, the situation creates a potential buying opportunity for long-term investors. Two retailers with bright prospects, Ross Stores (ROST +1.25%) and Five Below (FIVE +0.31%), have stock prices 4.9% and 8.2% off their 52-week highs, respectively. That should encourage patient growth investors to give these two stocks a closer look. Image source: Getty Images. 1.

Ross Stores Ross Stores operates two discount chains: Ross and dd's Discount. The former is an off-price retailer that sells apparel and home fashions at 20% to 60% discounts to other retailers, and the latter sells goods at steeper discounts up to 70%. The chains target different customers. Ross stores appeal to middle-income consumers, while dd's seeks to attract a lower-income demographic. Both brands draw customers since people like discounts, naturally. And that's particularly true during a challenging economy. Also, Ross can buy merchandise at more attractive prices during those times. In the company's fiscal fourth quarter (ended Jan. 31), same-store sales (comps) grew an impressive 9%. Management expects a 3% to 4% comps increase this year, and earnings-per-share growth of 6% to 11%. ExpandNASDAQ: ROSTRoss StoresToday's Change(1.25%) $2.66Current Price$215.75Key Data PointsMarket Cap$69BDay's Range$210.63 - $216.0852wk Range$124.07 - $216.80Volume165KAvg Vol2.5MGross Margin29.35%Dividend Yield0.78% The retailer has a successful formula and strong execution, and room to open new stores. It ended the year with 1,904 Ross Stores in 44 states, up from 1,831 across 43 states. The company also opened eight dd's stores to bring the number to 363 locations in 22 states. 2.

Five Below As its name suggests, Five Below offers low prices and a lineup of products, many of which target teens and pre-teens. Sales have been advancing at a good clip. And fiscal fourth-quarter comps increased an outstanding 15.4%, capping off a year in which they rose 12.8%. The period ended on Jan. 31. ExpandNASDAQ: FIVEFive BelowToday's Change(0.31%) $0.71Current Price$231.21Key Data PointsMarket Cap$13BDay's Range$223.77 - $232.2552wk Range$52.38 - $237.50Volume35KAvg Vol1.1MGross Margin31.96% Management expects another strong year, guiding for comps to increase 3% to 5% in 2026. And it sees plenty of room to expand. It added 227 and 150 stores in 2024 and 2025, respectively, bringing its total to 1,921 in 44 states. Management plans to expand by another 150 stores this year. The company previously stated its expectation that it could reach 3,500 stores.Read NextMar 9, 2026 •By David Jagielski, CPALike Walmart Stock?

This Retailer May Be an Even Better Buy Right NowMar 4, 2026 •By Joe TenebrusoWhy Ross Stores Stock Jumped TodayMay 9, 2025 •By Parkev Tatevosian, CFAShould Investors Buy Ross Stock Amid Rising Tariffs?Mar 4, 2025 •By Motley Fool Markets TeamRoss Stores: EPS Rises, Revenue DipsNov 21, 2024 •By Motley Fool Markets TeamRoss Stores: Modest Sales, Strong EPSAug 23, 2024 •By Eric VolkmanWhy Ross Stores Stock Topped the Market TodayAbout the AuthorLawrence Rothman, CFA, has been a contributing Motley Fool stock market analyst since 2019, covering consumer goods and retail stocks. Previously, Lawrence worked on Wall Street and at independent research firms before devoting his attention to finding successful long-term investments for individual investors.TMFLarryrothmanStocks MentionedRoss StoresNASDAQ: ROST$215.75(+1.25%)+$2.66Five BelowNASDAQ: FIVE$231.21(+0.31%)+$0.71*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.