Oppenheimer lists 5 retail stocks investors should own for 2025

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Investing.com -- Oppenheimer in a note dated Wednesday flagged five key retail stocks that they believe investors should seriously consider as part of their portfolios heading into 2025.

The stocks identified—Church&Dwight Co (NYSE:CHD), Freshpet Inc . (NASDAQ:FRPT), Prestige Consumer Healthcare (NYSE:PBH), Target Corporation (NYSE:TGT), and Walmart Inc. (NYSE:WMT) — are positioned to benefit from evolving consumer behavior and strong execution in their respective markets.

Church&Dwight Co. is a household name in consumer products, with well-known brands like Arm&Hammer and OxiClean. Oppenheimer sees CHD as a defensive play in a market that continues to face macroeconomic uncertainties.

Church&Dwight has a solid reputation for stable growth and reliable earnings, making it attractive for investors seeking safety.

As inflation remains a concern, consumers are likely to continue buying essential household products, positioning CHD for steady performance.

Analysts at Oppenheimer stress that CHD’s ability to deliver consistent financial results, even during challenging economic periods, makes it a cornerstone of any retail investment strategy moving forward.

Freshpet represents the growing trend toward premium, natural pet foods, which continues to see strong demand as pet owners increasingly opt for healthier options.

As per Oppenheimer, Freshpet has carved out a niche in this high-growth sector by offering refrigerated, fresh pet food, positioning itself as a premium brand in an industry traditionally dominated by dry and canned foods.

The company's expansion in retail locations and increased marketing presence has led to robust sales growth.

With consumers willing to spend more on healthier products for their pets, Oppenheimer expects Freshpet to maintain its strong momentum and further grow its market share in the coming years.

Prestige Consumer Healthcare, another top pick, is capitalizing on the sustained consumer demand for over-the-counter healthcare products.

Oppenheimer’s analysts highlight PBH’s diverse portfolio, which includes household names like Clear Eyes, Chloraseptic, and BC Powder, as a key strength.

The ongoing focus on health and wellness, combined with the company’s strategic product innovations, has allowed PBH to thrive in a competitive landscape.

PBH is also benefiting from increased consumer interest in preventative health measures, a trend that has accelerated in the wake of the COVID-19 pandemic.

The analysts at Oppenheimer believe that the company’s ability to maintain pricing power while continuing to deliver new products will drive sustained growth for investors through 2025.