Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - UBS has just dropped its list of top retail stock picks that could be strong candidates for multibagger stocks in 2026, thanks to significant growth projections.
This momentum is being fueled by expectations of US fiscal stimulus, which is set to drive sales in the softline (apparel) sector.
Key Takeaways
- UBS predicts US fiscal stimulus will accelerate retail sales growth in early 2026.
- Companies with a "go it alone" strategy—independent of third parties—have a competitive edge.
- Ralph Lauren and Deckers Outdoor made the top cut, despite having different stock performance trajectories.
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UBS analyst Jay Sole sees minimal risk for retail companies meeting Q4 earnings expectations.
According to Sole, the momentum in this sector is likely to hold strong at least through the end of January.
The UBS list covers companies catering to a wide range of consumers, from luxury goods to discount retailers.
The ten top picks include On Holding, Ralph Lauren, Gildan, and Levi Strauss & Co..
Also making the list are Amer Sports, Birkenstock, The TJX Companies, Inc., Burlington Stores, Deckers, and Signet Jewelers.
Ralph Lauren takes the spotlight for successfully leveraging AI to maintain its classic image while staying relevant in the modern market.
Sole believes that brands capable of "going it alone"—without relying heavily on malls or third parties—will be the industry winners.
On the flip side, Deckers Outdoor Corporation is seen as an undervalued play, despite facing some headwinds throughout 2025.
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Reference:
- Business Insider, UBS says to buy these 10 apparel stocks as US consumers show signs of strength. Accessed on December 31, 2025
- Featured Image: Shutterstock
Disclaimer
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