The Top 2 Retail Stocks to Buy Right Now

By John Ballard – Mar 17, 2026 at 2:45AM ESTKey PointsHome Depot is an excellent stock to profit off a housing recovery.TJX has one of the most resilient business models in the retail sector.Retail stocks have lagged the broader market for most of the past decade. High inflation in recent years has certainly not helped consumers build the confidence to open their wallets. The upside is that when the economy finds firmer footing, the strongest retailers are often the first to show it in stronger sales. With uncertainty still in the mix, investors should stick with retailers that have proven they can hold up through just about any environment. Two that have been doing exactly that are Home Depot (HD +1.05%) and The TJX Companies (TJX +0.45%). Here's why these are the two retail stocks I'd consider buying right now. Image source: Getty Images.

Home Depot Home Depot is the first retail stock to consider buying. It's a solid way to position for a housing-market recovery, after weak growth over the past few years was weighed down by high inflation and interest rates. Even in a challenging backdrop, Home Depot has performed well. The stock is up 18% over the past three years, while the company's trailing-12-month revenue has climbed to more than $164 billion. That leaves plenty of long-term upside, as management estimates its addressable market to top $1 trillion. Its comparable sales in the fourth quarter grew 0.4% year over year -- a solid result in a weak housing market. ExpandNYSE: HDHome DepotToday's Change(1.05%) $3.55Current Price$342.58Key Data PointsMarket Cap$341BDay's Range$340.65 - $345.2452wk Range$326.31 - $426.75Volume202Avg Vol4.2MGross Margin31.33%Dividend Yield2.69% Home Depot is not only the leading home improvement retailer, but also one of the largest consumer discretionary companies by market cap, according to research from The Motley Fool. Its supply chain and distribution network are major advantages, and its e-commerce business continues to grow. It recently partnered with Alphabet's Google Cloud to launch agentic AI tools to assist homeowners in planning remodeling projects, which should help Home Depot continue to gain market share. High rates are still pressuring spending on big projects, but that won't last forever. When housing improves, Home Depot should be positioned for stronger sales and earnings growth. In the meantime, shareholders get paid to wait with a 2.7% dividend yield that's well supported by annual earnings. The TJX Companies TJX is one of the most resilient retail stocks for long-term growth. As the leading off-price apparel and home fashions retailer, it has a wide moat built on standout inventory management and its ability to buy name-brand merchandise at steep discounts. Savings of up to 50% off regular retail helps build a loyal base of repeat shoppers. ExpandNYSE: TJXTJX CompaniesToday's Change(0.45%) $0.70Current Price$156.13Key Data PointsMarket Cap$173BDay's Range$155.33 - $157.6952wk Range$113.98 - $162.68Volume230KAvg Vol5.2MGross Margin32.57%Dividend Yield1.09% TJX sources from thousands of vendors worldwide, giving it the flexibility to adjust quickly to almost any economic environment. This advantage has served it well in recent years. Net sales crossed $60 billion last year, with comparable sales up 5%. All of TJX's operating businesses reported sales growth, including Marmaxx, HomeGoods, TJX Canada, and its international segment. The stock is trading at an elevated price-to-earnings multiple, so I would consider buying it in stages. But the premium also reflects the value investors place on its resilient business model and opportunities to expand overseas. The dividend has grown about 13% annually over the past three years, and that's with a relatively low payout ratio of about 34% of earnings. The yield is around 1.1%, near the S&P 500 average. With plenty of runway in international markets, TJX could deliver solid growth for many years.Read NextMar 11, 2026 •By Daniel Foelber2 Dow Jones Dividend Stocks to Double Up on and Buy in MarchMar 9, 2026 •By Neil Patel3 Things to Know About Home Depot Stock Before You BuyMar 4, 2026 •By Motley Fool YouTubeHome Depot Is a Classic "Boomer Stock" -- but Its Stable Cash Flows and Dividend Still Matter for Long-Term InvestorsMar 4, 2026 •By Neil PatelIs Home Depot a Buy, Sell, or Hold in 2026?Mar 4, 2026 •By Will HealyHome Depot vs. Lowe's: Both Retail Giants Are Tapping AI, but Which One Is Doing It Better?Dec 31, 2025 •By Daniel Foelber5 Dow Jones Stocks Fell Over 10% in 2025. Here's Why They Are All Contrarian Buys for 2026.About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionedHome DepotNYSE: HD$342.58(+1.05%)+$3.55AlphabetNASDAQ: GOOGL$305.65(+1.11%)+$3.37S&P 500 IndexSNPINDEX: ^GSPC$6,699.38(+1.01%)+$67.19TJX CompaniesNYSE: TJX$156.02(+0.38%)+$0.59AlphabetNASDAQ: GOOG$304.42(+0.98%)+$2.96*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.