1 Consumer Stock Worth Investigating and 2 That Underwhelm

Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. 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 1%. This drop was disheartening since the S&P 500 gained 6.6%.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here is one resilient consumer stock at the top of our shopping list and two best left ignored.

Two Consumer Retail Stocks to Sell:

GameStop (GME)

Market Cap: $10.84 billion

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

Why Do We Avoid GME?

1. GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
2. The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
3. On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push

GameStop is trading at $24.12 per share, or 28.3x forward P/E. Read our free research report to see why you should think twice about including GME in your portfolio.

Sportsman's Warehouse (SPWH)

Market Cap: $44.25 million

A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.

Why Do We Steer Clear of SPWH?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Issuance of new shares over the last three years caused its earnings per share to fall by 32.6% annually, even worse than its revenue declines
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $1.16 per share, Sportsman's Warehouse trades at 24.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SPWH doesn’t pass our bar.

One Consumer Retail Stock to Watch:

Ollie's (OLLI)

Market Cap: $6.22 billion

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ:OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Why Are We Fans of OLLI?

1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
2. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.2% over the past two years
3. Projected revenue growth of 14.8% for the next 12 months is above its three-year trend, pointing to accelerating demand

Ollie’s stock price of $101.45 implies a valuation ratio of 24.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.