Best Retail Stocks to Buy in September

Second from the top of the list is O’Reilly Automotive (ORLY)

Subscribers to Chart of the Week received this commentary on Sunday, September 3.

Here at Schaeffer’s, a new month usually means one thing: a fresh list of the best and worst 25 stocks to buy. For September, Senior Quantitative Analyst Rocky White pulled an interesting slew of names for his “Best S&P 500 Stocks in September” for the last 10 years, with one sector reoccurring so often, it can only be assumed is no coincidence. Below we’ll take a closer look at the best 25 stocks to buy in September, but be sure to keep an eye out on our website for a special Labor Day piece on 25 exchange traded funds (ETF) to avoid as well!

Jumping right in, we are seeing a clear indication of several repeat sectors on the table below, some of which include retail, travel & leisure, and tech. Taking a closer look at retail, the sector holds five of the top 10 performing stocks in the month of September, and is the second-best overall performer. Looking broader, retail takes up seven of the 25 spots.


It’s not entirely surprising that historically retail sees an uptick in outperformance as we enter not only a new season, but near the holidays as well. Enjoying its spot second from the top of the list is O’Reilly Automotive (ORLY), which has moved mostly higher since falling to its May 2022 lows. After breaking above the long-term resistance of $880 back in April, this level moved in as stable support during several pullbacks. There also looks to be a trendline of support forming that stems from the stock’s early June drop.

Even further, options are looking attractively priced, per the stock’s Schaeffer’s Volatility Index (SVI) of 17%, which ranks in the bottom 5th percentile of annual readings. In fact, the six other retail giants on the list also are sporting attractively priced options, with Etsy (ETSY), Ross Stores (ROST), and Walmart (WMT) all ranking in the bottommost annual percentile.



Retail sales data made headlines this month, after it saw numbers for July increase a more-than-expected 0.7%. Core retail sales also saw a bump, moving 1% higher. This data gave investors an optimistic outlook for the broader economy, subsequently brushing inflation fears aside for the time being. That said, retail stocks look like a good bet not only historically, but as an affordable, common pick of late.

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